The Reserve Bank of Australia (RBA) has raised the official cash rate three times over the last quarter and market expectations indicate that this upward trend will continue. Examining other central banks’ actions may provide insights into Australia’s future monetary policy decisions.
Australia’s interest rate is now 1.35%, its highest point in three years. Deutsche Bank chief economist for Australia Phil O’Donaghoe expects it to jump by 75-basis points in August and to reach 3.1% by the end of the year. However, this prediction is at odds with forecasting from the big four banks and previous statements by RBA Governor Philip Lowe.
The table below shows the current interest rate and inflation rate for 15 countries. The data also illustrates the adjustment from the previous reporting period.
| Country | Interest Rate (Adjustment from previous period) | Inflation Rate (Adjustment from… |
