BENGALURU – The Reserve Bank of Australia will raise interest rates by a more modest 25 basis points for a second straight month on Tuesday and is set to do so again in December despite the highest inflation in three decades, a Reuters poll found.
This puts the RBA – which kicked off its relatively late starting rate-hiking campaign with four straight 50 bp moves – out of step with its global peers, which are mostly still raising rates in larger increments.
Nearly 90 percent of respondents, 28 of 32, in the Oct. 24-27 Reuters poll said the RBA would hike its benchmark cash rate by 25 bps to 2.85 percent at its Nov. 1 meeting. The remaining four forecast a 50 bp rise.
Keep on reading: Australia’s central bank seen to stick with modest rate hikes despite hot inflation