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RBA supersizes its interest rates order

The Reserve Bank of Australia announced a supersized interest rate hike, the largest single move in 22 years.

RBA Governor Philip Lowe superimposed on RBA building signage.
Tuesday's increase in interest rates by the RBA Board is a further step in the withdrawal of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic.

The Reserve Bank of Australia (RBA) has imposed a supersized interest rate hike on borrowers.

It lifted the cash rate target by 50 basis points to 85 basis points (0.85 per cent), surprising the market with a rate rise double that expected by most commentators.

The RBA’s dramatic move on Tuesday (7 June) was made in response to ballooning inflation that it sees worsening unless the period of historically lower interest rates is put to an abrupt…