The Reserve Bank of Australia will likely increase the cash rate by 0.25 of a percentage point on Tuesday, even with the money markets betting on a larger rise.
The Reserve Bank of Australia will likely increase the cash rate by 0.25 of percentage point on Tuesday, even with the money markets betting on a larger rise.
RBA governor Philip Lowe said last month that an increase of 25 basis points was a “signal we’re getting back to business as usual”.“It doesn’t preclude a bigger or a smaller number in the future, but we wanted to signal that, really, things are getting back to normal, it’s business as usual, we’re making a standard adjustment in interest rates,” Lowe said after the“Fifteen basis points would’ve been small and 40 basis points to take us to 50 would’ve been, you know, larger than normal.
The bank can’t consider politics. But it would be a bit of a slap in the face to Treasurer Jim Chalmers to impose a super-sized rate hike immediately on the new Labor government after the election.