The RBA board at its regular monthly meeting lifted its cash rate target 50 basis points to 0.85%. To this load will be added larger repayment costs for those on variable loans with the main commercial banks likely to pass on today’s rate rise promptly. The Aussie dollar rose against the US counterpart and stocks extended falls on the prospect of higher rates. The Albanese government inherited an economy with a jobless rate at its lowest since the mid-70s but also with an underlying inflation rate that is running at its highest quarterly pace since 2002. Canada’s central bank last week lifted its cash rate by 50 basis points for second month in a row.

Source: The Guardian June 07, 2022 22:48 UTC