2023.02.0703:14:00UTC+00Australia Central Bank Hikes Rate By 25 Bps

Australia's central bank raised its benchmark rate by a quarter-point on Tuesday, as widely expected.

At the first meeting of the year, the board decided to lift the cash rate target by 25 basis points to 3.35 percent.

The interest rate on Exchange Settlement balances was also raised by 25 basis points to 3.25 percent.

The current sequence of policy tightening has taken the cash rate target to 3.35 percent from 0.10 percent, indicating a total 325 basis-point increase since April 2022.

RBA Governor Philip Lowe said further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.

"The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that," Lowe said.