'This rise in inflation largely reflects global factors,' Dr Lowe said. Given this, and the very low level of interest rates, it is appropriate to start the process of normalising monetary conditions.'Ī further rise in inflation is expected in the near future. 'There is also evidence that wages growth is picking up. 'The economy has proven to be resilient and inflation has picked up more quickly, and to a higher level, than was expected,' Dr Lowe said.
RBA governor Philip Lowe said the board judged that now is the right time to begin withdrawing some of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic. It is also expected to increase throughout this year. This is the first time since November 2010 that the RBA has had a rate increase, after holding the rate at a record low 0.1 per cent since November 2020.Įconomists previously anticipated the rate would rise by no more than 0.15 percentage points, so it is a little higher than expected. The Reserve Bank of Australia has officially raised the cash rate by 0.25 percentage points to 0.35 per cent.
