The Central Bank of Australia raised its key rate to the highest in more than a decade

The Reserve Bank of Australia on Tuesday raised its key rate by 25 basis points to 3.60%. This has become the maximum value for more than the last ten years.

At the same time, the central bank said that further tightening of monetary policy would be required to curb inflation. However, not everything is so obvious here: the regulator refused to talk about future «increases» in interest rates, instead noting the need for «further tightening» of monetary policy, which can be interpreted as a softening of rhetoric.

In an official statement following the meeting of the central bank, it was noted that the growth rate of wages is still in line with the target inflation rate, while recent data indicate a reduction in the risk of a wage-price spiral.

In total, since May last year, the RBA has raised the key rate ten times, by a total of 350 basis points. Today, representatives of the Reserve Bank said that subsequent decisions on the rate will take into account the pace of development of the global economy, trends in household spending, as well as inflation and labor market forecasts.