Reserve Bank of Australia lifts cash rate to 3.85 percent in first hike in two years
The Reserve Bank of Australia increased the cash rate by 25 basis points citing strong private demand. This move marks the first increase in two years.
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The Reserve Bank of Australia 
AUraised interest rates by 25 basis points to a cash rate target of 3.85% in a unanimous decision at its February policy meeting. This move marks the first rate increase from the central bank in two years and occurred only six months after its last rate cut in August. The board stated that private demand is growing more quickly than expected, capacity pressures are greater than previously assessed, and labour market conditions remain a little tight. Markets had already anticipated the move, with a 78% probability of a hike priced in prior to Tuesday's decision.
AUraised interest rates by 25 basis points to a cash rate target of 3.85% in a unanimous decision at its February policy meeting. This move marks the first rate increase from the central bank in two years and occurred only six months after its last rate cut in August. The board stated that private demand is growing more quickly than expected, capacity pressures are greater than previously assessed, and labour market conditions remain a little tight. Markets had already anticipated the move, with a 78% probability of a hike priced in prior to Tuesday's decision.
