Decision exceeds predictions from economists amid pressure on households and businesses from rising inflation
- Follow our Australia news live blog for the latest updates
- Get our free news app; get our morning email briefing
The Reserve Bank has announced the biggest single rise in the cash rate in 22 years as Australia’s central bank tries to quash inflation before it gets out of control.
The RBA board at its regular monthly meeting lifted its cash rate target 50 basis points to 0.85%. Economists were again surprised by the size of the move, having been mostly split between predicting a 25 or 40 point increase, according to Bloomberg.
