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Australia’s Central Banks Hikes Interest Rate by 25 BPS, Lesser Than Global Nations

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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.

BTC, DOGE and Other Crypto React as Numera Predicts 100BPS Rate Hike

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The biggest cryptocurrencies have continued to plummet, as the price of Bitcoin (BTC) fell to $20,600354. The increased weakening of Bitcoin has been devastating for cryptocurrencies like Dogecoin (DOGE), Cardano (ADA), XRP, and others.

Early on Tuesday, cryptocurrency prices fell precipitously as a result of higher-than-expected consumer price index (CPI) statistics.

The market anticipates that the US Federal Reserve will increase its commitment to tightening financial conditions.

BTC and other cryptos take a hit as CPI numbers are out

The Federal Reserve is likely to hike its key interest rate by at least three-quarters of a percentage point next week, with some speculating that it may need to increase it even more after consumer price inflation data came in hotter than anticipated.

Nomura Securities analysts now predict that the Fed will announce a 100-basis point increase. The business claimed that “the August CPI report… implies a succession of upside inflation risks may be materializing.” 

By the end of the year, the Fed will likely announce two further rate increases of 50 basis points to combat inflation, according to experts. 

The probability of the big rate rises is now estimated at 28% in Fed funds futures. The market seems to be assuming that the central bank would maintain a more gradual pace of monetary tightening rather than conduct a really significant rate rise.

The U.S. central bank increased interest rates by 75 basis points in July, which provided some comfort to BTC and other cryptos. The forthcoming merge event has been overshadowed by recent inflation figures since market sentiment is largely pessimistic.

BTC took a major hit along with other major altcoins. Bitcoin which was recently showing signs of slow recovery erased it when it plummeted to $20,371 at the time of writing. ETH, ADA, SOL, DOGE, and other major coins also followed suit with single and double-digit losses.