RBA Hikes As Expected

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By Greg Peel

As core inflation continues to measure above the RBA’s comfort zone, it was considered necessary to raise rates once more lest inflation runs out of control. The official rate moves from 6.00% to 6.25%.

Despite Australians struggling with mortgages, and despite the effects of the “worst drought in a thousand years”, the RBA has seen an economy that is still relatively strong.

FN Arena will report the RBA’s justification, and economist responses, later today.

FN Arena will also endeavour to keep tabs on the US mid-term congressional elections, as polls have now closed. If the Democrats achieve a major swing, it should be known by this afternoon (Sydney time). If the result is unclear at that stage, it means the Republicans look more like they might hang on.

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