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RBA announces rate hike by 25 basis points

The Reserve Bank of Australia announced a 25 basis point interest rate hike after its meeting on Tuesday (3rd), pushing its official interest rate to 0.35%. Its rate hike was a bit earlier than market expectations, but the rate of increase was less aggressive than market expectations. Due to Australia's general election on the 21st of this month, the market originally thought that the Reserve Bank of Australia would postpone the interest rate hike until the June meeting, and the increase will be 40 basis points. However, it may be that the inflation rate is so high that the annual inflation rate in the first quarter was as high as 5.1%, which drove the RBA to act. This rate hike is believed to be just the beginning, and future rate hikes are expected to appear one after another. Benefiting from the interest rate hike, the Australian dollar once rose above 71 cents.
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