Home topics news Source: Spelio on Flickr News News Feeling the pressure: interest rates now 1.85%, further increases expected Rhea Laxmi Nath August 3, 2022 The Reserve Bank of Australia (RBA) has lifted its benchmark interest rate for the fourth month in a row, with the rate now sitting at 1.85 per cent. In a post-meeting statement, RBA Governor Philip Lowe did not rule out further increases in coming months to quell inflation. “The increase in interest rates over recent months has been required to bring inflation back to target and to create a more sustainable balance of demand and supply in the Australian economy,” Mr Lowe said. “The Board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path. The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market.” Inflation in Australia currently stands at 6.1 per cent, the highest it has been since the 90s. The RBA has placed its target range at 2- 3 per cent and has forecast CPI inflation to reach over 7 per cent over 2022 and a little above 4 per cent over 2023. According to this month’s Finder RBA Cash Rate Survey , 100 per cent of the experts and economists polled had predicted a cash rate increase in August. Graham Cooke, head of consumer research at Finder, said