At their monthly meeting this afternoon, the RBA has decided to further raise its cash rate by 50 basis points, taking it from 1.85% to 2.35%, it’s fastest pace in three decades.
Shane Oliver, Chief Economist at AMP, told news.com.au, “They’ve done five hikes in a row, four consecutive 0.5 per cent increases, it’s the fastest tightening cycle since 1994.” On top of that, Australia’s 2.35 per cent cash rate is the highest level it’s been since 2014. Mr Oliver has predicted that by the end of 2022, the cash rate will peak at 2.6 per cent, but once inflation is under control, he believes there will be several rate cuts.
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