The Reserve Bank of Australia decided at its monetary policy board meeting on the 29th to raise the policy rate by 0.25% to 4.60%. It was the first rate hike in three meetings and the fourth this year, decided unanimously, and the policy rate surpassed its peak during the COVID-19 pandemic to reach its highest level in 15 years, since late 2011. Citing prolonged inflation, the central bank judged that "further monetary tightening is appropriate." It also expressed concern that the situation in the Middle East remains tense and energy supply disruptions continue. On the future path of the policy rate, it said "further increases may be possible if necessary," stressing its readiness to raise rates again.
RBA hikes policy rate to 4.60%, a 15-year high, pushing the 10Y bond yield up and bond price down.
RBA raises rates and signals more tightening, boosting the Australian dollar.
