RBA raises cash rate 50bps to 1.35%

By Sophia Rodrigues

Published On 05 Jul 2022 , 03:03 PM

The Reserve Bank of Australia has increased the cash rate target by 50bps to 1.35%, marking two consecutive 50-basis-point moves.

The rate increases are part of the steps the RBA is taking to normalize monetary conditions in response to higher inflation.

The RBA said global factors are accounting for much of the increase in inflation in Australia, but domestic factors are also playing a role.

"Strong demand, a tight labour market and capacity constraints in some sectors are contributing to the upward pressure on prices. The floods are also affecting some prices," it added.

The RBA reiterated that the size and timing of future interest rate increases will be guided by the incoming data and its assessment of the outlook for inflation and the labour market.

"The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time."

LATEST SNIPPETS

RBA buys entire A$3B; Nov 2028 cut-off Yld drops 8.75bps vs Mon

The RBA bought entire A$3 billion of government bonds it offered to purchases earlier today. The cut-off yield o...

Published on : 01 Apr 2020 , 05:14 PM
RBA buying Australian govt bonds; April 2026-Nov 2029

The RBA is buying Australian government bonds today under the yield target policy, targeting its buying once again in...

Published on : 01 Apr 2020 , 11:51 AM
Results of RBA's purchase of semis; yields dn vs last week

The Reserve bank today purchased the following semi-government bonds for a total of A$3 billion. Many of these bonds...

Published on : 31 Mar 2020 , 04:31 PM
RBA back to buying semi-government bonds

The RBA is continuing with its bond-buying program Tuesday, and this time it is back to buying semi-government bonds....

Published on : 31 Mar 2020 , 12:02 AM
RBA buys entire A$3B bonds; focuses on 2027

Results of the RBA's government bond-buying auction Monday: 

The RBA bought the entire A...

Published on : 30 Mar 2020 , 12:00 AM
RBA buying A$3B bonds, April 2026-April 2029 maturity

The RBA is continuing with its bond-buying spree under the yield target policy but after two days of focusing on the...

Published on : 30 Mar 2020 , 11:57 AM
RBA to publish minutes on April 1 of special March board meeting

RBA will publish on April 1 the minutes of the special monetary policy announcement made on March 19. The meeting too...

Published on : 23 Mar 2020 , 06:15 PM
RBA Parliamentary Hearing Bit Unusual But Not Extraordinary

RBA deputy governor Guy Debelle will be appearing before the Economics Legislation Committee in Canberra late evening...

Published on : 04 Mar 2020 , 03:26 PM
Ex-centralbanker Says RBA Might Do 25+25, Not 50

An ex-centralbanker with strong experience in monetary policy during the global financial crisis says the RBA is more...

Published on : 02 Mar 2020 , 02:44 PM
Westpac Evans Expects RBA Cut Tue, QE by mid-year

Not much forecasting on RBA by Westpac's chief economist Bill Evans other than a 25bps cut in the cash rate...

Published on : 02 Mar 2020 , 11:14 AM