Reserve Bank Of Australia raised rates to 4%

The Reserve Bank of Australia raised rates by 0.25% to 4% during today's, as 14 of 19 economists in a Bloomberg survey predicted. In the statement published after the monetary policy meeting, the RBA’s Governor Glenn Stevens said that “Labour market data and a range of business surveys suggest growth in the economy may have already been at or close to trend for a few months” and “the Board judges that with growth likely to be close to trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average”. The outcome of last week’s monetary policy meeting indicated that the RBA is likely to continue tightening monetary policy in the months ahead. The cash rate may be raised to 4.75% by year-end, with a rate hike delivered every couple of months.