At its meeting today, the Board decided to increase the cash rate target to 4.85 per cent. This is the fifth increase this year, taking the cash rate to its highest level since 2008.
Inflation remains elevated and recent data indicate that it is broadly based. The inflation outlook has also been revised materially higher in the updated staff forecasts.
This partly reflects higher fuel and other commodity prices affected by the conflict in the Middle East. But domestic capacity pressures are also judged to have been a little tighter than earlier thought.
Please click here to view the Statement by the Monetary Policy Board: Monetary Policy Decision.
Please get in touch if you would like to discuss recent rates and how they may affect you, or if you would like to review your finance options.
