AU RBA Monetary Policy Statement

Commonwealth Bank of Australia expects the Reserve Bank to hold its cash rate steady for the remainder of 2026 following the third consecutive 25 basis point hike that lifted the official rate to 4.35% in May, though the bank cautioned that a further move in August could not be ruled out. The RBA's Monetary Policy Board voted 8-1 in favour of the May increase, a broader consensus than the 5-4 split that delivered the March hike. CBA said the decision itself was in line with expectations, but characterised the accompanying messaging ...

The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.35%, an outcome that was widely expected. The decision was made by an 8–1 vote, and the Governor’s comments were described as leaning towards a pause. A move above 0.72 in AUD/USD was described as needing broader US Dollar weakness in the near term. The article also referenced hawkish dissents at the US Federal Open Market Committee and resilient US data as factors that may limit such US Dollar weakness. The Australian Dollar outlook was framed as ...

The Reserve Bank of Australia is widely expected to raise its cash rate by 25 basis points to 4.35% at its Tuesday meeting, according to National Australia Bank, with updated forecasts set to accompany the decision that point to a higher terminal rate than previously projected as energy-driven inflation narrows the central bank's room to manoeuvre. The move, if delivered as NAB anticipates, would return the cash rate to the level that prevailed before the RBA began cutting through 2025, effectively unwinding that easing cycle in its ...

The RBA is broadly expected to hike rates at the conclusion of its policy-setting meeting on Tuesday. The main issue that could affect the market is what the bank communicates for its outlook. Many economists believe that this will be the last hike for a while, so if the RBA does not open the door for a pause, it could surprise the market. Inflation has been running above the RBA’s target since the middle of last year, and hasn’t abated despite recent hikes. This puts Australia’s central bank in a difficult position, as it was ...

The Australian dollar held firm on Monday ahead of a crucial central bank policy update that could take rates back to their post-pandemic highs, while the kiwi awaited a jobs report for clues on whether the economy can handle tighter policy. The Aussie was steady at $0.7206, after gaining 0.7% last week to reach $0.7228, its strongest since June 2022. It now faces resistance around $0.7250 and $0.7283, with support at $0.6834.Much is now riding on a rate decision from the Reserve Bank of Australia on Tuesday, where a quarter-point ...

The sense of anxiety that hung over the capital markets eased today. Equity markets are higher and the meltdown in gold and silver brought in new buying. The US dollar is mostly a little softer, but its upside correction does not appear over. Most emerging market currencies are firmer today, led by the unlikely Indian rupee, which gapped higher following the trade agreement with the US. Meanwhile, there is a partial US government shutdown that will disrupt reporting of economic data, including Friday’s nonfarm payrolls and today’s ...

Australia’s central bank raised its policy rate by 25 basis points to 3.85% on Tuesday, marking the Reserve Bank of Australia’s first rate hike since November 2023 as inflation continues to climb. The Reserve Bank of Australia’s move matched expectations from economists polled by Reuters and followed data showing inflation at its highest level in six quarters. The board voted unanimously to lift the cash rate, marking a reversal in direction after delivering three rate cuts in 2025. “Private demand is growing more quickly than ...