Breaking: RBA raises OCR by 25 bps from 2.35% to 2.60% in October, AUD/USD plunges

The Reserve Bank of Australia (RBA) raised its official cash rate (OCR) by 25 basis points (bps) from 2.35% to 2.60%.

The rate hike decision was widely anticipated and marked the fifth straight half percentage point hike by the central bank since the one initiated back in June.

According to the latest Reuters poll, the median forecast showed rates going up another 50 bps next quarter to peak at 3.35%.

more to come ....

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.