Reserve Bank of Australia raise interest rates by 0.25%
05 February 2008
The Reserve Bank of Australia has increased the official cash rate (OCR) by .25% to 7.00%. In the accompanying statement Governor Glenn Stevens commented:
'Recent information points to significant inflation pressures. CPI inflation on a year-ended basis picked up to 3 percent in the December quarter. This was a little higher than expected a few months ago.'
'The Board took careful note of recent events abroad and developments in financial markets. The world economy is slowing and it now appears likely that global growth will be below trenbd in 2008. Recent trends in world commodity markets suggest, however, that Australia's terms of trade are likely to rise further.'