RBA increases cash rate to 3.85%
At its May meeting, the Reserve Bank of Australia raised the cash rate from 3.60% to 3.85%.
This decision was made despite the Australian Bureau of Statistics reporting a decrease in annual inflation from 7.8% in the December quarter to 7.0% in the first three months of 2023.
Nevertheless, the RBA deems the current rate of inflation to be significantly above its target range of 2-3%, necessitating further rate increases to help moderate the economy.