Australia’s c.bank says getting closer to the point for smaller rate hike

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SYDNEY — Australia’s top central banker said on Friday it was getting closer to the point when the central bank would not need to hike rates by 50 basis points as the level of interest rates increases.

Appearing before a parliamentary economics committee, Reserve Bank of Australia (RBA) Governor Philip Lowe said it was getting closer to the normal setting on interest rates, and the next board meeting will consider whether to hike by 50 or 25 bps.

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In just five months, the RBA has raised its key cash rate by 225 basis points to a seven-year high of 2.35% as it battles to contain a surge in inflation. (Reporting by Wayne Cole and Stella Qiu; Editing by Jacqueline Wong)