Australia raises interest rates to 2.6%, the sixth increase since May

Sydney (Australia), 4 October. The Reserve Bank of Australia (RBA) raised interest rates on Tuesday by 0.25 per cent – from 2.35 to 2.6 per cent – in the sixth consecutive increase since May to tackle the high inflation affecting the country.

“The further increase in interest rates today will help achieve a more sustainable balance of demand and supply in the Australian economy. This is necessary to bring down inflation again,” RBA Governor Philip Lowe said in a statement.

The RBA’s increases seek to tackle inflation in Australia, which is currently at 6.1 per cent and is the highest since the early 1990s.

“This is the sixth rate hike in as many months, and today’s Reserve Bank governor’s comments suggest that further rate hikes are also possible,” Treasury Secretary Jim Chalmers said in a statement. A press conference in Canberra warned that recession expectations in major economies could change from “possible” to “probable”.

According to the entity, inflation will peak at 7.75 percent at the end of this year, and then decline to levels above 4 percent in 2023, and 3 percent in 2024.

The Reserve Bank of Australia had previously made five consecutive hikes from a record low of 0.1% to 0.35%, in addition to four more gains of 0.5 percentage point to 2.35% last month. EFE


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