Australia's central bank's fourth rate hike during the year

Xinhua News Agency, Sydney, August 2 (Reporter Hao Yalin) Australian Reserve Bank (central bank) announced on the 2nd that the benchmark interest rate raised 50 basis points to 1.85%, and at the same time increased the 50 basis points of foreign exchange settlement balance to 1.75%. This is the fourth rate hike of the Australian Central Bank this year.

Australian central bank governor Philip Luo said in a monthly monetary policy statement issued by the day that continuous interest rate hikes were to allow inflation to return to the target of 2%-3%, and create a more sustainable supply and demand balance for economic development.

According to the Australian Bureau of Statistics, the Australian Consumer Price Index (CPI) increased by 1.8%month -on -year in the second quarter of this year, a year -on -year increase of 6.1%, and the year -on -year increase hit a new high since 2001. The Australian Central Bank predicts that the CPI increase will reach 7.75%this year.

In KPMA Australian partner and senior economist Sara Hunter, in an interview with Xinhua News Agency, in addition to curbing inflation, the Australian Central Bank continuously raised interest rates to "cool down" some overheated economies. The Federal Reserve ’s interest rate hikes this year have put pressure on Australian monetary policy, and the Australian Central Bank is likely to continue to raise interest rates during the year.

Australian Treasury Minister Gim Charmers said on the same day that Australian family expenditures are bound to be affected by the latest interest rate hike decision. The rise in food prices and electricity prices allows people to face more difficult choices in how to balance family revenue and expenditure.

On May 3 this year, the Australian central bank launched the first interest rate hike since 2010, raising the benchmark interest rate by 25 basis points to 0.35%, and the interest rate of foreign exchange settlement from zero to 0.25%.

[Editor in charge: Jiao Peng]

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