EWA - Australia's central bank marks ninth straight rate hike more are coming

For the first time in its history, the Reserve Bank of Australia has recorded its ninth consecutive benchmark interest rate increase. The central bank increased its rate by 0.25 percentage point, taking the benchmark figure to 3.35% from 3.10%, with inflation at its highest level in decades.

"The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary," noted RBA ?Governor Philip Lowe.

The Australian dollar strengthened 0.4% on the news, trading at 0.6932 against the U.S. dollar, while Australia's S&P ASX 200 broader market index dipped about 0.5% .

The RBA will continue to weigh signs of weaker hiring and household spending against an acceleration in price pressures when discussing setting policy. Core inflation in the fourth quarter rose by 6.9% Y/Y, beating expectations of a 6.5% increase.

ETFs: iShares MSCI-Australia ETF ( NYSEARCA: EWA ), Invesco CurrencyShares Australian Dollar Trust ( NYSEARCA: FXA ); Franklin FTSE Australia ETF ( NYSEARCA: FLAU )

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