June RBA announcement: Reserve Bank lifts official interest rate by 50 basis points

In the RBA’s June meeting, the board added 50 basis points to the 0.35 per cent rate, increasing the cash rate target to 0.85 percent in its second rise in two months.

Yesterday marks the first time in over 20 years that the RBA had increased the cash rate target by more than 25 basis points. RBA governor Philip Lowe said inflation in Australia has increased significantly and is expected to increase further, foreshadowing further rate rises in the coming months.

“Today’s increase in interest rates by the Board is a further step in the withdrawal of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic,” he said in a statement.