The Reserve Bank of Australia (RBA) announced a further increase in the cash rate of 25 basis points to 3.85%.

Deborah Knight discussed the RBA’s decision with Scott Phillips from The Motley Fool. Phillips shared that the RBA believes inflation in Australia has passed its peak at 7%, but it’s still too high and will take time before it’s back in the target range.

He mentioned, “Given the importance of returning inflation to target within a reasonable time frame, the Board judged that a further increase in rates was warranted today.”

Hear more highlights from Deborah Knight below:

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