On Tuesday, the Australian dollar started growing against the US counterpart. The current quote is 0.6419.

At the meeting the Reserve Bank of Australia lifted the interest rate to 2.85% annual from 2.60% previously. This decision was anticipated, and this increase by 25 base points goes in line with the previously voiced RBA policy. This is the seventh increase in a row, so the interest rate has reached the high since April 2013. It seems that the rate is likely to keep growing: the RBA might go on raising it to hold back inflation.

In the comments, the Australian regulator mentioned that the growth of the interest rate is necessary for forming a good balance of supply and demand inside the economic system.

According to RBA expectations, inflation will reach the peak in Q4, hitting 8.00%. In 2023, average CPI is expected to be 4.75%, and in 2024 – 3.00%.

For the Aussie, all said above is a positive supportive factor.