Reserve Bank of Australia monetary policy decision for October 2022, a 25bp rate hike, taking the cash rate to 2.60%
A 50bp rate hike was the consensus, though not unanimous by any means
- Rate rise will help achieve more sustainable balance of demand and supply
- Board is committed to returning inflation to the 2–3 per cent range over time.
- Cash rate has been increased substantially in a short period of time.
- Size and timing of future rate rises will be determined by the data and outlook for inflation and the labour market
- Medium-term inflation expectations remain well anchored, and it is important that this remains the case
- Board expects to increase interest rates further over the period ahead
- Given the tight labour market and the upstream price pressures, the board will continue to pay close attention to both the evolution of labour costs and the price-setting behaviour of firms in the period ahead.
- Board remains resolute in its determination to return inflation to target