# Australia central bank stuns with 25-bps hike, warns more might be needed

> The Reserve Bank of Australia unexpectedly raised its cash rate 25 basis points to 3.85% on May 2, 2023, when markets had expected a pause. It warned that further tightening may be needed to bring inflation back to target. The Australian dollar rose about 1.3% on the decision.

- Date: 2023-05-02 · published 2023-05-02T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/36204-australia-central-bank-stuns-with-25-bps-hike-warns-more-might-be-needed
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A hawkish surprise strengthens the Aussie and tightens financial conditions, which can pressure commodity prices and export-linked demand from Australia. For feed buyers the effect is indirect, mainly through currency moves affecting Australian grain and barley export competitiveness.

## Read by commodity

- AUDUSD: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/australia-central-bank-stuns-market-with-quarter-point-rate-hike-2023-05-02/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.