Australia signals further tightening after unexpected rate hike

(Image: Bloomberg)

Wed, 03 May 2023

By Swati Pandey(Bloomberg) -- Australia’s central bank signalled further policy tightening ahead after unexpectedly raising interest rates by a quarter-percentage point on Tuesday, sending the currency and bond yields surging.The Reserve Bank of Australia (RBA) increased its cash rate to 3.85%, the highest level since April 2012, in a decision predicted by only nine of 30 economists. Money markets rapidly revised up expectations for further moves and are now pricing in a rate of just under 4% by October, from around 3.6% before today&rsqu...

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