Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Putin approvesexperts for talks with Ukraine: Kremlin
Russian Deputy FM Galuzin, Head of General Staff Kostyukov, Deputy Defense Minister Fomin will participate in Istanbul talks: Kremlin
Russian presidential aide Medinsky will lead Russia delegatioon at Ukraine talks: Kremlin
Putin approves composition of Russian delegation for negotiations with Ukraine: Kremlin
Abu Obeida posts on X, commenting on the West Bank operation amid Israeli rumors that he was assassinated
Israeli media: An Israeli settler was killed and two others were injured in the shooting near Salfit
Israeli emergency service: The shooting near Salfit resulted in two injuries, one in extremely critical condition and the other in serious condition
Palestinian sources: Two Israelis were injured in a shooting operation near Nablus in the northern West Bank
Ukrainian President Volodymyr Zelensky: I am waiting to see who will arrive from Russia. Then I will decide what steps Ukraine should take
Ukrainian President Volodymyr Zelensky: Ukraine ready for any format of negotiations to end war with Russia

Australia raises interest rates for first time since 2010

  • By Al Mayadeen net
  • Source: Agencies
  • 3 May 2022 08:34
3 Min Read

The pre-election spike was made to halt increasing consumer prices.

  • x
  • Australia raises interest rates for first time since 2010
    RBA governor stated more increases will follow in the near future

On Tuesday, Australia's central bank hiked interest rates for the first time in more than a decade, in a pre-election move aimed at containing skyrocketing consumer costs.

The Reserve Bank of Australia increased the main lending rate by 25 basis points to 0.35%, marking the first rise since November 2010.

RBA governor Philip Lowe stated that “the board judged that now was the right time to begin withdrawing some of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic."

Lowe added that the economy of Australia has shown resilience and picked up faster than expected. He also said wage growth was also picking up.

The governor added that along with the very low level of interest rates, he believes it is "appropriate" to begin the process of "normalizing monetary conditions.”

The hike was widely anticipated following a surge in consumer price inflation in the March quarter, with both headline and underlying inflation reaching new highs in more than two decades.

While most market experts predicted the rate hike, it came despite Lowe's prior promises that he wanted to see inflation readings as well as wage data - both of which are not available until May 18 – before raising rates.

Related News

Australia votes as opposition makes headway

'Distrusted' Morrison calls for election on May 21

According to several analysts, the failure to indicate Tuesday's action may jeopardize the credibility of future statements from Lowe and the RBA.

According to Lowe, “Inflation has picked up significantly and by more than expected, although it remains lower than in most other advanced economies."

Lowe stated unequivocally that the May hike will be followed by other increases in the near future.

“The board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time,” he stated, adding that “this will require a further lift in interest rates over the period ahead.”

The timing and magnitude of future hikes, however, will be determined by how the "balance of risks" evolves, according to Lowe.

This comes at a time when Australia's Prime Minister Scott Morrison announced federal elections for May 21, as he struggles to retain power after three years beleaguered by floods, bushfires, and the Covid-19 outbreak.

Morrison's conservative administration is attempting to win over Australia's 17 million voters, behind the opposition Labor party in a series of polls while presiding over a recovering economy with a 13-year low unemployment rate of 4%.

"This election is about you. No one else. It's about our country, and it's about its future," Morrison declared.

  • Australian PM Scott Morrison
  • Australia

Most Read

Trump cut off contact with Netanyahu, senior Israeli official says

Trump cut off contact with Netanyahu: Israeli media

  • US & Canada
  • 9 May 2025
A boy draped in a Palestinian flag carries a mock rocket during a weekly anti-US and anti-Israeli rally in Sanaa, Yemen, Friday, May 9, 2025 (AP)

Yemen announces hypersonic missile strike on Ben Gurion Airport

  • Politics
  • 9 May 2025
President Donald Trump, left, greets Israeli Prime Minister Benjamin Netanyahu at the White House, Monday, April 7, 2025, in Washington (AP)

US pressures 'Israel' for Gaza deal; Witkoff's Israeli rebuke leaked

  • US & Canada
  • 9 May 2025
Israeli troops move with APC, armored personnel carrier near the border with Gaza, in southern Occupied Palestine, Thursday, May 8, 2025 (AP)

'Gideon's Chariots' operation in Gaza is doomed to fail: Haaretz

  • Palestine
  • 9 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
A Fly Dubai plane is parked on the tarmac at Ben Gurion International Airport in the Occupied Palestinian Territories, Sunday, Nov. 10, 2024 (AP)
Economy

Israeli tourism suffers $3bln loss amid 'unprecedented' crisis

Israeli Prime Minister Benjamin Netanyahu speaks during an annual ceremony in al-Quds, Occupied Palestine, April 29, 2025 (AP)
Politics

Netanyahu refuses to budge, captive talks stall: Israeli officials

Susan Sarandon joins hundreds urging BBC to release delayed Gaza film
Europe

Susan Sarandon joins call for BBC to air documentary on Gaza medics

In this photo released by the Saudi Royal Palace, Syria's interim President Ahmad al-Sharaa, left, shakes hands with President Donald Trump, centre, in Riyadh, Saudi Arabia, Wednesday, May 14, 2025 (AP)
Politics

Trump worries 'Israel' with Syria sanctions lift: The Times

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS