EWA - Australia's central bank unexpectedly hikes rates by most in 22 years

The Reserve Bank of Australia on Tuesday has lifted interest rates by the most since February 2000 in a move that caught investors by surprise.  Moreover, the RBA increased its cash rate target by 50 basis points to 0.85%. Markets were expecting a move of either 25 or 40 bps.  "Given the current inflation pressures in the economy, and the still very low level of interest rates, the Board decided to move by 50 basis points today," RBA Governor Philip Lowe said in a statement.  Going forward, "the Board expects to take further steps in the process of normalising monetary conditions over the months ahead," Lowe added. “The board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.” Australia joins more than 50 central banks worldwide that have raised interest rates by at least 50 bps in one go this year,

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Australia's central bank unexpectedly hikes rates by most in 22 years