![]() In addition, the RBA also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.75%. Projections indicate that inflation is expected to reach 4.5% this year and fall to 3% in mid-2025. ![]() However, the bank's rate path will be influenced by how the economy and price pressures evolve over time. Interbank Rate: 1 CAD 0.7350 USD You sell CAD You get USD CAD 265 Your savings when exchanging with KnightsbridgeFX instead of your bank. The RBA stated that further tightening may be necessary to ensure inflation returns to the target range in a reasonable time frame. Also, the labor market remains tight, with the unemployment rate at its lowest point in nearly half a century. The move was motivated by the bank's concern that the current inflation rate in Australia, which is at 7%, is still too high. This marks the 11th time the bank has raised rates in the past year, defying market predictions for a pause and pushing borrowing costs to their highest level since April 2012. The Reserve Bank of Australia unexpectedly raised the cash rate by 25bps to 3.85% in May after maintaining it at 3.6% in April. The central bank also increased the interest rate on Exchange Settlement balances by 25bps to 4.0%. The committee said it remains resolute in its determination to return inflation to target and will do what is necessary to achieve that. The board added that it was still seeking to keep the economy on an even keel as inflation returns to the 2–3% target, but the path to achieving a soft landing remains a narrow one. Policymakers viewed that the upside risks to the inflation outlook in Australia have increased, mainly due to service price inflation. Tuesday's decision brought a total of 400bps rate increases since May 2022, pushing borrowing costs to their highest level since April 2012 and defying market consensus for a pause. ![]() The Reserve Bank of Australia unexpectedly raised the cash rate by 25bps to 4.1% in June after delivering a rate hike by the same margin in May while keeping the door open for further tightening as inflation remained persistently high while wage growth picked up. For details, please read our full Terms and Conditions. All Bank of Canada exchange rates are indicative rates only, obtained from averages of aggregated price quotes from financial institutions. The central bank also increased the interest rate on Exchange Settlement balances by 25bps to 4.0%. Home Statistics Exchange rates Find exchange rates, along with supporting data and background information.
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