RBA Minutes: Economy Remains Resilient In Australia
(RTTNews) - Members of the Reserve Bank of Australia's Monetary Policy Board agreed that the country's economy continues to weather the storm successfully in the aftermath of the chaos created by the COVID-19 pandemic, minutes from the bank's July 5 meeting revealed on Tuesday.
The members acknowledged that inflation has risen and is expected to continue to do so, the minutes showed, so further steps will be necessary to normalize monetary policy conditions.
The case for raising interest rates was further strengthened by recent unemployment data, which showed that the jobless rate has fallen to a multi-decade low. Caution is warranted, however, as the outlook for the global economy remains clouded by the ongoing war in Ukraine and persistent high inflation - especially among energy providers.
At the meeting, the central bank hiked its benchmark lending rate by 50 basis points, from 0.85 percent to 1.35 percent, citing the resilience of the economy and higher inflation. The bank also increased the interest rate on Exchange Settlement balances by 50 basis points to 1.25 percent.
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