RBA hikes to 4.10% — banks pass on amid oil shocks, jobs steady
Key Questions
What was the Reserve Bank of Australia's (RBA) latest decision on the cash rate?
The RBA Board increased the cash rate target by 25 basis points to 4.10 per cent following a 5-4 split. This decision was driven by inflation and oil pressures.
How did Australia's major banks respond to the RBA's rate hike?
The four major banks announced increases to their variable rates, impacting mortgages. Westpac paused further hikes.
What were the key March employment figures in Australia?
Unemployment remained steady at 4.3 per cent, with a gain of 52,000 full-time jobs. The data broadly matched RBA expectations as they monitor upcoming CPI.
What economic risks are associated with the current environment?
Builders' insolvencies are surging amid stagflation risks. The RBA is closely watching Q1 CPI data.
Why did the RBA decide to hike rates despite steady jobs data?
The hike was prompted by persistent inflation and oil shocks. Employment data was steady but did not alter the Board's focus on price pressures.
RBA Board confirms 25bp hike to 4.10% post-Mar 5-4 split, inflation/oil pressures; big four banks increase variable rates hitting mortgages; Westpac pauses further hikes; Mar jobs 4.3% unemp +52k full-time; builders insolvencies surge amid stagflation risks, eyes Q1 CPI.