Australia's central bank on Tuesday surprised markets by lifting interest rates by a smaller-than-expected 25 basis points, saying they had already risen substantially, though it added that further tightening would still be needed.
Wrapping up its October policy meeting, the Reserve Bank of Australia raised its cash rate to a nine-year peak of 2.60%, the sixth hike in as many months which included four outsized moves of 50 basis points.
"Reflecting this, the Board decided to increase the cash rate by 25 basis points this month as it assesses the outlook for inflation and economic growth in Australia," he added. "The Board expects to increase interest rates further over the period ahead." Interest rate futures jumped as the market priced in a likely lower peak for rates under the 4.0% previously expected, while three-year bond futures were down a steep 42.5 ticks at 96.750.Markets have been taking their cue from uber-hawkish central banks abroad, where hikes of 75 or 100 basis points have become almost common.
The hikes already delivered will add around A$800 a month in repayments to the average A$620,000 mortgage, a deadweight for a population that holds A$2 trillion in home loans.That drop combined with losses in pension funds cut A$484 billion from household wealth in the three months to June, and an even larger decline is likely in the September quarter.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
RBA Preview: 50 bps is not a given, it could be just 25 bps – ScotiabankAnalysts at Scotiabank lean towards a 25 bps rate hike announcement from the Reserve Bank of Australia (RBA) on Tuesday, although the depreciation of
Consulte Mais informação »
To 'Step Back From the Edge of Recession,' UN Urges Central Banks to Stop Rate Hikes'The current course of action is hurting the most vulnerable, especially in developing countries, and risks tipping the world into a global recession,' the UNCTAD chief warns of central banks hiking interest rates.
Consulte Mais informação »
Kenyan Central Bank Raises Key Rate by 75 Basis Points – Emerging Markets Bitcoin NewsThe Kenyan MPC took the step to increase the CBR by 75 basis points even when the East African nation’s inflation rate only went up by 0.2% from 8.3% in July to 8.5% in August. Inflation exchange
Consulte Mais informação »
Central Banks’ Higher Rates, Bond Sales Clash With Government NeedsCentral banks and governments are on a collision course in their efforts to bolster economic growth and contain inflation.
Consulte Mais informação »
U.N. Calls On Fed, Other Central Banks to Halt Interest-Rate IncreasesThe Fed’s rate increases so far this year would reduce poor countries’ economic output by $360 billion over three years, and that further policy tightening would do additional harm, a U.N. agency warns.
Consulte Mais informação »