RBA Hikes Key Rate in Move That May Herald Global Shift

Good morning, at its first meeting for the year, the Reserve Bank raised interest rates to 3.85%. The decision was expected, but it’s still not good news for everyday Australians already struggling with cost-of-living pressures. Worse still, there may be more rate pain to come given the strength of inflation in the economy. The RBA’s move may herald a global shift. Meantime, the ASX is set to open flat. - Paul-Alain Hunt, Mining and Metals Reporter.

The RBA raised its key interest rate on Tuesday, becoming the first major monetary authority to hike this year, as it judged domestic inflation pressures were persistent enough to warrant renewed restraint. Australian policymakers have been wrong-footed by a regathering of price strength, led by services and housing costs, against the backdrop of a still-tight labor market. Shifts may well be in the offing elsewhere, writes Bloomberg Opinion’s Dan Moss.