Strong day on sharemarket
The Reserve Bank of Australia has spoken and a cash rate hike of 50 basis points is being rolled out with the bank hinting at further hikes to come later in the year as it continues its fight against inflation.
The RBA’s hike was widely expected to be either in the 25bp or 50bp camp, so the decision to go with a 50bp jump didn’t come as a huge surprise.
The NZ dollar was trading at 90.31 Australian cents this afternoon – up from 91.15 cents from yesterday – but settled around the 90.49 cents mark in the half-hour after the RBA’s announcement broke.
RBA governor Philip Lowe said in his monetary policy decision announcement that the reserve bank had made the decision to hike its cash rate by 50 basis points – lifting the official cash rate from 0.85% to 1.35% – because of “high” inflation internationally and in Australia.
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