July 05, 2022 - 12:34 PM 240 views
The Reserve Bank of Australia (RBA) board members opted to increase the official cash rate (OCR) by 50 basis points (bps), from 0.85 percent to 1.35 percent, as was widely anticipated, during its monetary policy meeting on July 5.
According to a Reuters survey of 33 economists, the RBA will raise its cash rate by a further 50 basis points to 1.35 percent in July. A 25 bps rise was forecast by one economist.
In an early response to the anticipated 50 basis point RBA rate hike, the AUD/USD pair showed minimal change.
However, the delayed response resulted in the aussie losing 20 pip to close to 0.6865, losing 0.05 percent on the day.
About Reserve Bank of
Australia (RBA) Rate Decision
The Reserve Bank of Australia announces its interest rate decision. It is advantageous, or bullish, for the AUD if the RBA raises interest rates and expresses concern about the economy's potential for inflation. Similar to this, it is considered negative or bearish if the RBA has a dovish outlook on the Australian economy and maintains the current interest rate or lowers it.
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