Australia's central bank raises rates 50 basis points to 1.85%

Updated: 02 Aug 2022, 10:15 AM IST

TL;DR.

Wrapping up its August policy meeting, the Reserve Bank of Australia (RBA) said the hike was a further step in the normalisation of policy, dropping a previous reference to removing extraordinary stimulus.

A man walks past the Reserve Bank of Australia building in the central business district of Sydney on June 7, 2022. Australia's central bank raised interest rates by a higher-than-expected half percentage point on June 7 and warned of more increases, trying to rein in significantly increased inflation. (Photo by Muhammad FAROOQ / AFP)

(Reuters) - Australia's central bank raised its cash rate 50 basis points to 1.85% on Tuesday and flagged yet more tightening ahead, though it added that policy was not on a pre-set path.

Wrapping up its August policy meeting, the Reserve Bank of Australia (RBA) said the hike was a further step in the "normalisation" of policy, dropping a previous reference to removing "extraordinary" stimulus.

The fourth hike since May had been widely expected, but the changes to the statement were taken as slightly dovish and the local dollar fell 0.4% to $0.6992.

First Published: 02 Aug 2022, 10:15 AM IST