The bond market has cheered the Reserve Bank of Australia’s decision to raise the cash rate for fifth time this year, betting that Tuesday’s increase will be the central bank’s last.
The 2.30pm announcement, which sent the cash rate to an 18-year high of 4.85 per cent , was met with a fall in the Australian dollar, and a rally in government bonds as yields declined after policymakers voted six to three in favour of a rate increase.
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