Wheeler signals pause in hikes: jawbones dollar down

Today's official cash rate rise will be the last for some time. Reserve Bank governor Graeme Wheeler hiked the OCR from 3.25% to 3.5% this morning, but also says it will stay there until the effect of the run of hikes since March can be assessed.

"It is prudent that there now be a period of assessment before interest rates adjust further towards a more-neutral level," he says.

That is a shift from the central bank's previous stance, which implicitly built in two more hikes between now and the end of the year.

 

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