RBA Raises Cash Rate to 4.60%, Sees Economic Growth Slowing

The Reserve Bank of Australia (RBA) has increased its cash rate to 4.60% in a unanimous decision, as expected. This move was made at the 29 September meeting.

The RBA cited materialisation of upside risks to inflation but acknowledged slowing economic growth, easing labour-market conditions and falling housing prices. The central bank also kept the door open for more hikes 'if needed'.

However, in a press conference, Governor Bullock indicated that a rate hike and a hold were discussed during the meeting. She did not express any possibility of another rate hike in Q4 and emphasized the lags of monetary policy transmission from previous rate hikes.