Daily Management Review

Australian Central Bank raises key rate to the highest in more than a decade


Australia's central bank increases the key rate to 3.6 percent, the highest level in more than a decade.

The Reserve Bank of Australia increased its benchmark interest rate by 25 basis points on Tuesday to 3.60 percent, the highest level in more than a decade, and stated that additional monetary easing will be required to control inflation.

The rate of wage growth continued to be in line with the RBA's inflation goal, according to the official statement from its meeting in March, while recent data suggested that the risk of a wage-price spiral was diminishing.

Additionally, the regulator softened language by omitting references to upcoming interest rate "hikes" in favor of stating the need for "further tightening" of monetary policy.

source: reuters.com