Home topics news Source: Spelio on Flickr News News RBA tightens monetary policy with another interest rate hike, signalling more to come Yajush Gupta March 7, 2023 In March, the Reserve Bank of Australia (RBA) continued with its consistent monetary policy approach by announcing the tenth consecutive interest rate hike. Market analysts and policymakers anticipated this decision, as it resulted in a 25 basis points (bps) increase in the Official Cash Rate (OCR). The cash rate target now stands at 3.60 per cent, while the interest rate on Exchange Settlement balances is at 3.50 per cent. At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.60 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.50 per cent – https://t.co/wZhcvHm2Qa — Reserve Bank of Australia (@RBAInfo) March 7, 2023 Importantly, the Reserve Bank of Australia (RBA) Board has indicated that they believe further tightening of monetary policy will be necessary in order to ensure that inflation returns to the target range of 2-3 per cent and that the current period of high inflation is only temporary. Earlier, the bank raised the official cash rate by 0.25 percentage points following its monthly meeting in February , bringing it to 3.35 per cent. Several factors, such as rising inflationary pressures and sustained economic growth, influenced the RBA’s recent decision to raise the OCR. The central bank seeks to strike a balance between boosting economic activity