To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
The board shocked most observers by increasing the official cash rate to 2.25 per cent, after it had been at 2 per cent since May.
All 33 economists and commentators surveyed by comparison website finder.com.au had forecast that rates would remain on hold – indeed, five also forecast that a rate cut would occur at the next board meeting in February.
The RBA appears to have felt the economy was now strong enough to cope with increasing the cash rate from what had been a record-low setting.
Australia’s unemployment rate fell from 6.2 per cent to 5.9 per cent in the most recent monthly statistics.
After today’s decision, speculation will begin about what the RBA will do at its February meeting.