Another Australian Central Bank Interest Rate Hike – Currency Thoughts
Another Australian Central Bank Interest Rate Hike
March 17, 2026
By a narrow 5-4 vote, the Board of the Reserve Bank of Australia pulled the trigger a a second consecutive 25-basis point hike of the Official Cash Rate, which at 4.10% will now represent its greatest elevation in ten months. Australian CPI inflation last month of 3.8% was above expectations and the central bank’s target range. The four dissenting votes favored leaving the OCR at 3.85%, but the majority’s view in a statement of explanation “judged that there is a material risk that inflation will remain above target for longer than previously anticipated and that the risks have tilted further to the upside.”
While part of the pick-up in inflation is assessed to reflect temporary factors, the Board judged that the labour market has tightened a little recently and capacity pressures are slightly greater than previously assessed. Developments in the Middle East remain highly uncertain, but under a wide range of possible scenarios could add to global and domestic inflation.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: Reserve Bank of Australia
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