Forex
RBA Interest Rate Hike Marks Shift Away From Cheap Money
The Reserve Bank of Australia (RBA) has raised interest rates to their highest level in 15 years, signaling a shift away from cheap money. This move was seen as a dress rehearsal for other major economies, with inflation proving stubborn and picking up again. RBA Governor Michele Bullock initiated rate hikes in February, reversing the three cuts made in 2025.
The new threshold crossed on Tuesday saw borrowing costs surpass the peak reached post-pandemic after growth rebounded. This increase marks a significant turning point for Australia's economy, with implications for other countries to follow suit.