Investing.com – The Reserve Bank of Australia on Tuesday raised its benchmark interest rate for the sixth time since early October, stating that a raft of strong economic data spurred the move.
The central bank lifted its cash rate from 4.25% to 4.5%, in a move widely expected by economists.
In a statement, RBA Governor Glenn Stevens said: "With the risk of serious economic contraction in Australia having passed some time ago, the board has been adjusting the cash rate towards levels that would be consistent with interest rates to borrowers being close to the average experience over the past decade or more."
Following the move, the Australian dollar slid against its U.S. counterpart, with AUD/USD shedding 0.67% to reach 0.9198.
The central bank lifted its cash rate from 4.25% to 4.5%, in a move widely expected by economists.
In a statement, RBA Governor Glenn Stevens said: "With the risk of serious economic contraction in Australia having passed some time ago, the board has been adjusting the cash rate towards levels that would be consistent with interest rates to borrowers being close to the average experience over the past decade or more."
Following the move, the Australian dollar slid against its U.S. counterpart, with AUD/USD shedding 0.67% to reach 0.9198.