At its meeting today, the Board decided to increase the cash rate target by 50 basis points to 1.85 per cent. It also increased the interest rate on Exchange Settlement balances by 50 basis points to 1.75 per cent. The Board places a high priority on the return of inflation to the 2–3 per cent range over time, while keeping the economy on an even keel. The path to achieve this balance is a narrow one and clouded in uncertainty, not least because of global developments. The outlook for global economic growth has been downgraded due to pressures on real incomes from higher inflation, the tightening of monetary policy ... (full story)

Following are the key headlines from the August RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe. • Board expects to take further steps in the process of normalising monetary conditions over the months ahead. • Not on a pre-set path. • Global factors explain much of the increase in inflation, but domestic factors are also playing a role. • Board committed to doing what is necessary to ensure inflation returns to target over time. • There are widespread upward pressures on prices from strong demand, a tight labour market and capacity constraints in some sectors of the economy. • Rate ... (full story)

The Reserve Bank of Australia (RBA) has lifted its cash rate target by 50 basis points to 1.85%, and hinted at more increases to come. The RBA "expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path," RBA Governor Philip Lowe says. And it's "committed to doing what is necessary to ensure that inflation in Australia returns to target over time." Lowe says the RBA's central forecast is for Consumer Price Index (CPI) inflation to be around 7.75% over 2022. The most recent data from the Australian Bureau of Statistics shows CPI inflation ... (full story)