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.

5 Reasons Why the Reserve Bank Raised Interest Rates for the 5th Time This Year

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.