RBA Raises Cash Rate to 4.35% in Third Consecutive Hike on May 19, 8 of 9 Board Members Support

According to the Reserve Bank of Australia’s meeting minutes on May 19, the central bank raised its official cash rate to 4.35% in its third consecutive rate hike, with eight of nine board members voting in favor. The RBA stated the hike will provide space to monitor how households and businesses respond to the Middle East conflict, which has driven fuel prices higher. The central bank acknowledged policy action cannot alter inflation’s near-term trajectory. Market participants expect at least one additional rate increase by year-end, with over 50% probability of two more hikes.