AU Cash Rate

The Reserve Bank of Australia is expected to hold rates at 4.35% on Tuesday according to all 30 economists in the latest Reuters poll, so the focus will be on any shift in its restrictive policy stance. The Australian economy remains resilient, and while CPI did fall to 2.8% in Q3, within the RBA's 2%-3% target band for the first time since 2021, core inflation remains elevated. The jobless rate has remained between 4.0% and 4.2% since April, despite migration rising rapidly, with the employment participation rate at an all-time high ...

video The US dollar flexed its muscles lately on the back of upbeat data suggesting that there is no need for the Fed to deliver another bold 50bps rate cut at the remaining gatherings of the year, but also due to increasing market bets that Donald Trump will return to the White House. The day when US citizens will decide whether this will be the case or not has come. While some Americans have already casted their vote, the official election day is on Tuesday, with candidates Donald Trump and Kamala Harris battling neck and neck ...

Australia’s powerful stretch of hiring extended into September and the unemployment rate held steady, prompting a rise in the currency as traders scaled back bets on the Reserve Bank’s first interest-rate cut. Employment rose 64,100 — driven by full-time jobs — versus a forecast 25,000 gain, Australian Bureau of Statistics data showed Thursday. The jobless rate was unchanged at a downwardly revised 4.1%. The Australian dollar rose as much as 0.4% to 66.91 US cents and the yield on policy-sensitive three-year government bonds jumped ...

The International Monetary Fund has endorsed the Reserve Bank’s tough monetary policy – while warning rates might need to rise again if the fight against inflation stalls. A report after IMF staff visited Australia, issued on Thursday, says the economy is resilient but faces challenges, including significant risks from abroad. “Growth has slowed; while inflation is retreating from its peak, it remains elevated as demand-supply imbalances persist particularly in sectors like rents, new dwellings and insurance,” the report says. A ...

A snippet from UBS on Pacific Rim central banks: Fed’s easing cycle is just getting started, UBS see another 50 bp of cuts this year and 100 in 2025. Bank of Japan to raise short term rates by 25 basis points by the middle of 2025. See the most aggressive easing moves from the Reserve Bank of New Zealand, 200 basis points of cuts by September 2025. Reserve Bank of Australia is likely to wait until Q1/Q2 before starting its easing cycle, expect 75 basis points of easing by September 2025. AUD is UBS' 'most preferred', it'll benefit ...

The Reserve Bank of Australia (RBA) is widely expected to hold the cash rate steady at 4.35 per cent when it announces its interest rate decision at 2:30pm today. Only one major bank is still holding out hope the central bank will cut rates by the end of the year. A hold will mean the cash rate will remain at 4.35 per cent for a full 12 months, with the board's next decision not coming until November 5 on Melbourne Cup day. This would mark the seventh consecutive hold. Australia’s unemployment rate remained steady at 4.2 per cent in ...