Reserve Financial institution of Australia financial coverage determination for October 2022, a 25bp fee hike, taking the money fee to 2.60%
A 50bp fee hike was the consensus, although not unanimous by any means
- Price rise will assist obtain extra sustainable stability of demand and provide
- Board is dedicated to returning inflation to the two–3 per cent vary over time.
- Money fee has been elevated considerably in a brief time frame.
- Dimension and timing of future fee rises can be decided by the information and outlook for inflation and the labour market
- Medium-term inflation expectations stay properly anchored, and it’s important that this stays the case
- Board expects to extend rates of interest additional over the interval forward
- Given the tight labour market and the upstream value pressures, the board will proceed to pay shut consideration to each the evolution of labour prices and the price-setting behaviour of corporations within the interval forward.
- Board stays resolute in its willpower to return inflation to focus on
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