MADRID, 6 Jun. (EUROPA PRESS) –
The Reserve Bank of Australia, the body in charge of the monetary policy of the oceanic country, has decided to raise interest rates on Tuesday by 25 basis points, up to 4.10%, placing the reference rate at its highest since April 2012 .
Likewise, the institution has pointed out that “it is possible that a greater tightening of the monetary policy is required to guarantee that inflation returns to the objective in a reasonable period of time.”
The entity has stressed that, despite the fact that inflation has left behind its peak, it remains at a level of 7%, which it has described as “too high”, so it will take some time before it returns to the target range of between 2% and 3%.
In this sense, the governor of the Australian central bank, Philip Lowe, has warned that wage growth has picked up in response to the tight labor market and high inflation, although, at the aggregate level, wage growth remains consistent with the inflation target, provided that productivity growth recovers.
In this way, the institution has indicated that it remains alert to the risk that ongoing high inflation expectations contribute to further increases in both prices and wages, especially given the limited capacity available in the economy and a rate of very low unemployment
