Breaking: RBA hikes OCR by 50 bps to 2.35%, AUD/USD slips

At its September 6 monetary policy meeting, the Reserve Bank of Australia (RBA) announced a 50 basis points (bps)  rate hike, rasinig its official cash rate (OCR) from 1.85% to 2.35%.

The rate hike decision was widely anticipated and marked the fourth straight half percentage point increase by the central bank and the fifth rate hike since May.

According to RBAWatch, markets are wagering rates could peak around 3.85% next year given inflation is running at a 21-year high of 6.1% and likely to top 7% by Christmas.

more to come ...

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.