5 Reasons Why the Reserve Bank Raised Interest Rates for the 5th Time This Year
Governor Michele Bullock says accepting 'some pain now' will prevent greater economic pain later.
TL;DR
- The RBA lifted the cash rate by 25 basis points to 4.85 percent.
- This marks the highest cash rate level since 2008.
- Six RBA board members voted for the rate rise, while three preferred to maintain the previous rate.
- Governor Michele Bullock cited inflation as being 'too high' and forecasted to remain 'higher for longer'.
- Inflation was recorded at 4.3 percent in the year to September, exceeding the RBA's 2-3 percent target.