The Reserve Bank of Australia lifted the official cash rate by 0.25 percentage points this week, bringing the target to 4.1 per cent, up from 3.85 per cent.
It might have seemed inevitable, given the Middle East crisis and subsequent oil price hikes, but interestingly the decision was in fact close, with five board members voting for the move, while four voted against. Maybe that balance will change when next the board meets, in May. As RBA Governor Michelle Bullock said following the decision, ‘the board is going to be monitoring this stuff very closely and if we have to change tack we will’.