The Reserve Bank of Australia raised interest rates for the third month in a row, announcing further hikes ahead, as it struggles to contain rising inflation even at the risk of triggering economic deflation. .
At the conclusion of the July policy meeting, on Tuesday, the Reserve Bank of Australia raised its benchmark interest rate by 50 basis points to 1.35%, bringing the hike to 125 basis points since May, in the fastest series of moves since 1994.
RBA Governor Philip Lowe said in a statement that the board expects to take further steps in the process of normalizing monetary conditions in Australia in the coming months.
The rally was widely expected in the markets, and the Australian dollar fell slightly in response to the decision, reaching $0.6863.
Official data on consumer price inflation for the second quarter is due later this month, and is expected to show another worrying rise to 6% or more, which is Levels not seen since the imposition of the sales tax in 2000.
