Australia’s central bank has raised interest by the most since February 2000 as it adopts a more aggressive approach to curbing rampant inflation.
The Reserve Bank of Australia’s decision to raise rates by 50 basis points marked the first time that the bank has introduced back-to-back rate rises since 2010, and was at the top end of economists’ forecasts.
The central bank has been criticised in recent months for not acting sooner to damp the threat of inflation. But the RBA has now joined a wider global push to tighten monetary policy after stimulus measures were deployed during the coronavirus pandemic.
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