Bonds & Rates
Home›Bonds & Rates›Central Banks›RBA lifts cash rate 25 bps to 4.60% as inflation risks…
RBA lifts cash rate 25 bps to 4.60% as inflation risks build
The RBA cited stronger-than-expected inflation outcomes, saying some upside risks flagged in August are now materialising, including higher global energy prices.
The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60% in a unanimous decision, with policymakers pointing to inflation risks shifting from concern to reality, according to Action Forex.
The RBA said some upside risks identified in August are materialising, citing higher global energy prices tied to the widening Middle East conflict, rapid increases in technology-related goods prices driven by AI demand, and continued pressure on domestic capacity.
In its assessment, inflation pressure persists despite signs of a slowdown, including easing consumer spending, housing prices falling across most capital cities, weaker new housing lending, and broadly softening labour-market conditions as expected.
Action Forex added that the RBA also pointed to stronger-than-expected inflation outcomes at its prior meeting and noted that higher fuel prices have already been partially passed through to prices.