Press Enter to search · ESC to close

Macro

RBA Expected to Raise Cash Rate 25bp to 18-Year High of 4.85%

Australia’s central bank is widely expected to lift its cash rate by 25 basis points to 4.85%, an 18-year high, to counter inflation pressure. Markets will watch the decision statement and Governor Michele Bullock’s press conference for hawkish signals or room left for further tightening. With inflation expectations rising and falling labor participation masking slack, investors will assess how the RBA balances sticky inflation against a slowing jobs market.

Original source

AI take

The signal here is less the widely anticipated move than the guidance that follows it: whether the RBA frames further tightening as live or closes the door matters more for rate-sensitive assets than the hike itself. The emphasis on rising inflation expectations alongside falling participation suggests the bank sees less slack than the headline jobs data implies, which affects the credibility of any pause. For crypto and RWA markets, the open question is whether Australian tightening reinforces the higher-for-longer narrative globally or stays a domestic story.

Generated by AI for reference only.

Share

Related News

TREE NEWS share card
Long-press image above → Save to Photos / Share
Pitch us Feedback