RBA hikes cash rate by another 50 basis points
However, it plans to do this while also keeping the economy on an “even keel” and Lowe said the path to achieving this balance was a narrow one that was “clouded in uncertainty”, especially considering the current global environment.
He stressed that today’s further increase in interest rates would help bring inflation “back to target” and create a more “sustainable balance of demand and supply” in the Australian economy.
“The board expects to increase interest rates further over the months ahead, but it is not on a pre-set path,” Lowe said in his statement.
“The size and timing of future interest rate increases will be guided by the incoming data and the board's assessment of the outlook for inflation and the labour market.”
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