7/5, 6:31 AM (Source: TeleTrader)
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Australian central bank raises rate by 50 bp to 1.35%

The Reserve Bank of Australia (RBA) revealed on Tuesday it opted to raise interest rates for the third month in a row, adjusting its monetary policy setting in July by 0.5 percentage points.

The central bank's targets for the cash rate, as well as the interest rate on Exchange Settlement balances, will be increased by 50 basis points to stand at 1.35% and 1.25%, respectively.

"Global inflation is high. It is being boosted by COVID-related disruptions to supply chains, the war in Ukraine and strong demand which is putting pressure on productive capacity," said RBA Governor Philip Lowe. "Today's increase in interest rates is a further step in the withdrawal of the extraordinary monetary support that was put in place to help ensure the Australian economy against the worst possible effects of the pandemic."

Baha Breaking News (BBN) / NL