Reserve Bank of Australia Raises Key Rate by 50 Basis Points to 1.85%

The video discusses a recent interest rate hike to 1.85%, marking a 50 basis point increase. It highlights the expectation of inflation peaking later in the year and the cumulative rate hikes reaching 275 basis points, the largest in six months since 1994. The central forecast for CPI inflation is 7.75% for the current year and slightly above 4% for 2023. The path to achieving inflation growth balance is described as narrow, with significant market reactions, particularly in the Aussie dollar.

What was the rate target adjusted to, and what was the basis point move?

• 2.25% with a 100 basis point move

• 1.85% with a 50 basis point move

• 2.00% with a 25 basis point move

• 1.75% with a 75 basis point move

What is the central forecast for CPI inflation for the current year?

• 5.5%

• 7.75%

• 8.25%

• 6.5%

What is the priority mentioned in the second section regarding inflation?

• Achieving a 1-2% inflation target

• Returning to a 2-3% inflation target

• Reducing inflation to below 1%

• Maintaining a 4-5% inflation target

How is the market reacting to the language used in the economic policy?

• The market is stable with no significant changes

• The market is showing a slight shift in interpretation

• The market is experiencing a major downturn

• The market is unaffected by the language

What is the central forecast for 2023 CPI inflation?

• Above 5%

• Below 3%

• Around 3.5%

• A little above 4%