Fourth rate hike from the Reserve Bank of Australia

The Reserve Bank of Australia raised the policy rate by 50 basis points to 1.85 percent. Although the central bank stated that the path to be followed in monetary policy was not predetermined, he pointed out that interest rate hikes would continue.

In the statement made after the August policy meeting, the central bank stated that the interest rate hike is another step in the "normalization" policy, referring to the termination of the "extraordinary" policies that support the economy.

In a statement after the meeting, Reserve Bank of Australia Governor Philip Lowe said:

“The rise in interest rates today is the next step in the normalization of monetary conditions in Australia. The rise in interest rates in recent months was necessary to bring inflation back to target and create a more sustainable balance of demand and supply in the Australian economy.”

“The Board expects to take further steps in the process of normalizing monetary conditions in the coming months, but not on a predetermined path,” Lowe said. The size and timing of future interest rate increases will be driven by incoming data and the Board's assessment of the inflation and labor market outlook. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time," he added.