[Market Close] RBA hikes by non-surprising 25 basis points

The central bank also increased the interest rate on exchange settlement balances by 25 basis points to 3%.

RBA governor Philip Lowe said Australia’s inflation was still “too high” and returning inflation to target required a “more sustainable balance between demand and supply”.

The NZ dollar fell from above 94.54 to 94.18 Australian cents after the RBA’s announcement, but still held its 10-month high that it reached yesterday.

The kiwi edged down almost one cent against the greenback, down from 64.01 to 63.34 US cents at 3pm this afternoon.