Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

The Australian Central Bank unexpectedly raised the base rate to 3.85%


May, 02 2023
watermark Economic news

The Reserve Bank of Australia (RBA) on Tuesday raised its key interest rate by 25 basis points to 3.85% per annum. This decision came as a surprise to analysts: according to their forecasts, the market expected the rate to remain at the same level.


In April, the Australian central bank did not change the rate and paused in the policy tightening cycle. Statistics for the first quarter of the year showed that inflation in the country slowed from 7.8% to 7%, and market participants expected that the regulator would refuse to further tighten policy.


However, the Central Bank's management sees the inflation rate as still too high to stop the rate hike. Reserve Bank Governor Philip Lowe said: «Inflation in Australia has peaked, but 7% is still too high, and it will take time for it to return to the target level.»


Analysts note that since May last year, the current increase was the 11-th increase in the cost of lending. In total, the rate was raised by 375 bp.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.