China News Agency, Beijing, February 7th Canberra News: The Reserve Bank of Australia (central bank) announced on the 7th that it will raise the benchmark interest rate by 25 basis points to 3.35%.
The Reserve Bank of Australia announced on the 7th that it would raise the benchmark interest rate by 25 basis points to 3.35%, which is the ninth consecutive rate hike since the second quarter of 2022.
The country's consumer price index (CPI) will increase by 7.8% in 2022, the highest level since 1990 and higher than growth expectations.
The bank predicts that due to the global situation and the slowdown in Australia's domestic demand growth, the level of inflation in Australia will decline in 2023, and the CPI growth rate will fall to 4.75% this year.
The bank believes that the current top priority is still to curb domestic inflation and control CPI growth at the target level of 2% to 3%, and it is expected to further increase interest rates in the next few months.
According to Sky News Australia, Treasurer Jim Chalmers said in response to the rate hike news that it was not the Labor Party's role to question the central bank and that the government was working on addressing "wider pressures".
Chalmers added that the government's three plans to tackle high inflation are to lower the cost of living, deal with supply chain problems and labor shortages, and limit government spending.
(over)