Australiacbrates

RBA Governor Michele Bullock defends the hike to 4.35%, warning that the Iran war and oil shocks have "complicated" the inflation fight and increased recession risks.

The Reserve Bank of Australia's monetary policy board increased the cash rate target by 25 basis points to 4.35%.

Global monetary policy remains on high alert as the European Central Bank (ECB) and Bank of England (BoE) joined the US Federal Reserve in holding interest rates steady this week.

Bank of England Governor Andrew Bailey said inflation is expected to rise to "a little over 3.5% by the end of the year" as a direct consequence of the conflict in the Middle East. He was speaking during a press conference following the central bank's decision to keep interest rates on hold with several policymakers saying they might consider future hikes.

The Federal Reserve is currently facing its most significant internal upheaval in over three decades.

In a historic 8-4 vote, the central bank opted to maintain interest rates, marking the most fractured decision since 1992.

The Reserve Bank of Australia raised its key interest rate for a second straight meeting on Tuesday. The central bank's nine-member policy committee split five-to-four in favor of raising the cash rate to 4.1% from 3.85% in its first back-to-back hike since mid-2023. Bloomberg's Mark Cranfield breaks down the situation.