Reserve Bank of Australia with their 13th cash rate hike since they began this hiking cycle in May of 2022.
Headlines via Reuters:
Board remains resolute in its determination to return inflation to
- CPI inflation is now
expected to be around 3½ per cent by the end of 2024 and
at the top of the target range of 2 to 3 per cent by
the end of 2025.
- Board judged an
increase in interest rates was warranted today to be more assured
that inflation would return to target in a reasonable timeframe.
- Whether further
tightening of monetary policy is required to ensure that inflation
returns to target in a reasonable time frame will depend upon the
data and the evolving assessment of risks
- Still significant
uncertainties around the outlook
- Services price
inflation has been surprisingly persistent overseas and the same
could occur in Australia
- To date, medium-term
inflation expectations have been consistent with the inflation target
and it is important that this remains the case
- High inflation is
weighing on people’s real incomes and household consumption growth
is weak, as is dwelling investment
- Wages growth has
picked up over the past year but is still consistent with the
inflation target, provided that productivity growth picks up
- Weight of
information suggests that the risk of inflation remaining higher for
longer has increased.
Bolding above is mine. The RBA doesn’t know if this is the peak for rates and have allowed the option of more if needed.
Given how widely expected this cash rate rise was its no surprise to see AUD/USD a little lower after the announcement.
Still ahead in 10 minutes time:
- Failure to act on high CPI threatens to damage the Reserve Bank of Australia’s credibility
- Reuters Poll: RBA to high cash rate to 4.35% on November 7
- IMF tells the RBA to hike interest rates higher, and hold ’em high for longer
- Westpac forecasting a November Reserve Bank of Australia rate hike
- UBS forecasts a November RBA interest rate hike, and likely more to come after that
- RBA rate hike incoming on November 7 – will they hike again in December?
- Commonwealth Bank of Australia forecast a 25bp RBA rate hike on November 7
- Australia – Demand for luxury supercars “through the roof”
- Australian Treasurer Chalmers says inflation is moderating but persistent
- ANZ forecasts a 25bp RBA interest rate hike on November 7 (previous forecast was December)
- Australia – market is rapidly pricing in a November rate hike after surging inflation data
- AUD/USD jumped higher on Australian inflation data, November 7 rate hike is likely now.
This article was written by Eamonn Sheridan at www.forexlive.com. Source