The Reserve Bank of Australia Raised Interest Rates by 25 Basis Points to 3.35% as Expected

At its first meeting of the year, the RBA raised interest rates by 25 basis points to 3.35%, the highest level since September 2012, in line with market expectations. The RBA also signalled the need to tighten monetary policy further to curb stubbornly high inflation. After the announcement of the resolution, the AUD/USD rose to a high level while the yield of three-year government bonds rose 18 basis points to 3.28%. The stock market fell 0.5%.