RBA raises OCR by 25 bps to 3.35% in February

The Reserve Bank of Australia (RBA) board members decided to raise its official cash rate (OCR) by another 25 basis points (bps) from 3.10% to 3.35%, as widely expected, when they met at their February 7 monetary policy meeting, the first of this year.

According to the latest Reuters poll, the RBA was expected to deliver a fourth successive quarter-point interest rate hike on Tuesday. The central bank would likely follow it up with a fifth in March as it continues its battle to tame inflation.

AUD/USD pares intraday gains around 0.6930 as bulls struggle near the short-term key hurdle heading into Tuesday’s European session. In doing so, the Aussie pair fades the bounce off a one-month low while snapping a three-day downtrend.