RBA announces another 25 bps OCR rate hike in November

At its November 1 monetary policy meeting, the Reserve Bank of Australia (RBA) increases its official cash rate (OCR) by another 25 basis points (bps) from 2.60% to 2.85%, as widely expected.

Tuesday’s rate hike decision marks the second straight quarter percentage point increase by the RBA.

According to the latest Reuters poll, nearly 90% of respondents expected the RBA to hike its benchmark cash rate by 25 bps to 2.85%.

AUD/USD reaction

In an immediate reaction to the RBA decision, the AUD/USD pair remained little changed. At the time of writing, the aussie is up 0.53% on the day, trading at 0.6435.

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.