The Reserve Bank has announced interest rates will increase again for the second consecutive month. 7NEWS
“Given the current inflation pressures in the economy, and the still very low level of interest rates, the Board decided to move by 50 basis points today.
“The board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead.” While inflation has significantly increased in Australia, it is expected to rise further before declining back towards the 2-3 per cent range next year, Lowe added.“Higher prices for electricity and gas and recent increases in petrol prices mean that, in the near term, inflation is likely to be higher than was expected a month ago,” he said.
“As the global supply-side problems are resolved and commodity prices stabilise, even if at a high level, inflation is expected to moderate.Federal Treasurer Jim Chalmers said Tuesday’s announcement was “difficult news” for homeowners. “A better future awaits but first we have to navigate together this inflation challenge we inherited, and the rising interest rates that accompany it,” he said on Twitter.
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