Reserve Bank of Australia raises interest rates to 7-year high

The Reserve Bank of Australia raised its policy rate by 50 basis points to 2.35 percent, in line with expectations. Thus, the policy rate in the country reached its highest level since 2015. The Reserve Bank of Australia made its fourth consecutive interest rate increase, while also raising its policy rate to its highest level in 7 years. The bank raised its policy rate by 50 basis points to 2.35 percent. This was also the expectation of economists participating in the Bloomberg survey. With the latest interest rate increase, the bank created the fastest tightening cycle. In May, the policy rate in the country was at a record low of 0.1 percent. With the interest rate increases that started later, the interest rate was raised to 2.35 percent. The bank also signaled that increases in the policy rate could continue. Reserve Bank of Australia Governor Philip Lowe said that the monetary policy committee expected to raise interest rates in the coming months, but that this did not indicate a predetermined path.