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RBA announces rate hike to 1.85%

The Reserve Bank of Australia raised interest rates by half a percentage point as expected after the meeting on Tuesday (2nd), pushing the official interest rate to 1.85%. In his statement, RBA Governor Lowe said the bank will continue its pace of rate hikes until it returns to an appropriate level, but will not set a rate hike guidance. As the RBA has proposed 2.5% as a suitable neutral interest rate level in the past, the market now estimates that when the Australian interest rate rises to 2.5%, this cycle of interest rate hikes may peak. For the September interest rate meeting, according to the changes in interest rate futures market prices, the market estimates that a 25 basis point interest rate hike is the consensus, but the probability of a half percent increase in interest rates is only 25%.
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