Home›Forex›Central Banks›RBA lifts cash rate 25 bps to 4.60% amid inflation ups…

RBA lifts cash rate 25 bps to 4.60% amid inflation upside risks

The RBA cited the Middle East conflict, which has driven a renewed rise in crude oil and refined product prices, as a key inflation risk.

Reported · Written up by our desk · Central Banks

The RBA Monetary Policy Board raised Australia’s cash rate by 25 bps to 4.60%, a move that was widely expected after Governor Bullock signaled upside risks to inflation had materialised, according to Action Forex.

In its decision, the RBA highlighted three inflation upside risks, led by the Middle East conflict, which it said has re escalated and contributed to renewed surges in crude oil and refined product prices.

The RBA also flagged domestic capacity pressures and the data centre and AI investment boom as factors it is monitoring for more persistent inflation pressures, Action Forex reported.

Action Forex further noted that it now expects another 25 bps increase in November, contingent on there being no sudden resolution of the Middle East conflict and no other event that significantly lowers the outlook for energy related costs.

Latest closeWTI crude $90.46 ▲1.2%

More like this

Sources