Australia follows suit with other nations in hiking interest rates to combat inflation. The aggressive approach of central banks throughout the world is still present. The governments of many economies have recently announced back-to-back increases in interest rates, with Australia being the most recent to do so.
The Board agreed to raise the cash rate goal by 25 BPS to 2.60 percent at its meeting today. The interest rate on Exchange Settlement accounts was also raised by 25 basis points to 2.50 percent.
The Board is dedicated to gradually bringing inflation down to the 2-3% level. The current increase in interest rates will assist in achieving this objective, and more increases will probably be needed in the coming months.
Within a short time, there has been a significant rise in the cash rate. As a result, the Board agreed to raise the cash rate by 25 basis points this month while considering Australia’s prospects for inflation and economic expansion.
Australia’s inflation is high in comparison to other nations
Australia’s inflation rate is excessively high, as it is in the majority of other nations. Strong local demand in relation to the economy’s capacity to supply that demand and international forces both contribute to this high inflation, which is mostly explained by these variables.
Over the coming months, further inflation is anticipated until it starts to drop back to the range of 2-3%. The continued settlement of supply-side issues worldwide, recent drops in the pricing of some commodities, and the effects of rising interest rates all contribute to the anticipated slowdown in inflation next year.
However, the rate hike would definitely have an impact on the crypto and casino industry. Even though the 25 BPS rate hike won’t have any major effect on the price of crypto assets, it will have an impact on crypto and casino businesses.
The crypto market is slumping in a never-ending bear market. With the rise in interest rates by the Reserve Bank of Australia, crypto and casino firms have to amend the necessary measures to ensure that they are stable during extreme market conditions. These have also urged top online Australian casinos to take a good look at the cryptocurrency ecosystem on the nation.