Australia’s hawkish pivot jolts markets

Having abandoned his pledge of just two months ago to remain patient, Reserve Bank of Australia (RBA) governor Philip Lowe (pic) topped economists estimates by raising the cash rate 25 basis points to 0.35%. That move and suggestions that more hikes will follow sent benchmark three-year bond yields soaring through 3% for the first time in eight years.

SYDNEY: One of the developed world’s last remaining doves turned hawkish as Australia’s central bank rocked markets with a bigger-than-expected interest-rate hike in the middle of an election campaign.

Having abandoned his pledge of just two months ago to remain patient, Reserve Bank of Australia (RBA) governor Philip Lowe (pic) topped economists estimates by raising the cash rate 25 basis points to 0.35%.