TREE NEWS reports: Australia’s central bank is widely expected to raise its cash rate by 25 basis points to 4.6%, the highest level since November 2011, ending two consecutive holds. Markets will watch the decision statement and Governor Michele Bullock’s press conference for whether the hawkish tone persists and signals a further November hike. Above-forecast inflation, stronger-than-expected second-quarter GDP growth and rising inflation expectations may prompt the RBA to flag concerns over sticky inflation and reassess the timeline for a return to its 2%-3% target.
RBA Expected to Hike Cash Rate 25bp to 4.6%, Highest Since Nov 2011
AI take
The signal here is less the hike itself than the RBA abandoning two consecutive holds, which suggests policymakers see the inflation backdrop as worsening rather than merely slow to improve. That matters most for Australian rate-sensitive borrowers and the currency, since a return to tightening after a pause resets expectations for the whole cycle. The open question is whether Bullock's language locks in a November move or leaves it data-dependent; markets will parse the statement and press conference for how far the bank is willing to stretch the timeline back to target.
Generated by AI for reference only.
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