As expected, the Reserve Bank of Australia (RBA) has hiked its cash rate from 4.10% to 4.35%, the +25 bps rise markets were expecting. That comes after three 'on hold' monthly decisions. It rose +25 bps to 4.1% on July 5, 2023. Australia is finding high inflation embedded deeply now, a persistence that is hard to quell. Inflation expectations are still running higher than 5%, probably closer to 6%. The Australian central bank has been a laggard in using interest rate signals to push back against high inflation. Even this new higher 4.35% rate will be at a level that is far lower than most similar central banks have ... (full story)