RBA increases cash rate to 0.85%

The Reserve Bank of Australia (RBA) increased the official cash rate by 50 basis points to 0.85% at today’s board meeting.

The move was widely expected, as the RBA had previously signalled it intended to make several rate rises in the near future, to combat rising inflation.

‘Core’ inflation, which is currently 3.7%, is forecast to reach 4.6% by the December quarter – well above the RBA’s 2-3% target.

You can read the RBA's June statement here...