Australia is primed to hike - how to play it | Metals Mine

  • Australia is primed to hike - how to play it

    From think.ing.com

    Beyond a 25bp hike in February, the likelihood is for another 25bp hike in May by the Reserve Bank of Australia (RBA). From there, the likelihood is we brace for an environment where the 3mth bills rate is trending in the 4.25% - 4.5% area. That's broadly breakeven with where the 2yr rate is now (4.25%), and only a tad below the 3yr rate (4.3%). In contrast, the 10yr rate is in the 4.9% area, reflecting the risk being discounted on the market for a break above 4.5% for the 3mth bills rate in the 5yr forward space. While we anticipate a rate hike theme, and then a hold for a period, we are more sanguine about the ... (full story)

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    AU: House Standing Committee on Economics

    From youtube.com/ausparliamentlive|Feb 5, 2026

    Committee Reference: Review of the Reserve Bank of Australia Annual Report 2025

    Bullock: Opening Statement to the House of Representatives Standing Committee on Economics

    From rba.gov.au|Feb 5, 2026

    Good morning, Chair and members of the Committee. My colleagues and I are pleased to be here today to answer your questions. These hearings are an important part of the accountability process for the Reserve Bank. As you know, our mission is to promote the economic prosperity and welfare of the Australian people, now and into the future. We do this by conducting monetary policy with the aim of maintaining low and stable inflation and full employment, and we also support the stability of the financial system. But our responsibilities go beyond this – we work to support a reliable, efficient and competitive payments system, deliver efficient and effective banking services to Australian government agencies and provide secure and reliable banknotes. Since we last met with the Committee, the Monetary Policy Board judged that it was appropriate to tighten monetary policy to help to return inflation to target. I will start with some background to this decision and the outlook for the Australian economy. I’ll then make some remarks on the payments system and cash distribution. And I’ll finish off with an update on our progress towards achieving the objectives of the RBA Review. RBA Governor Bullock said the board will stay data-dependent as inflation risks remain persistent, the labour market is still tight, capacity constraints are being assessed, and global conditions could shift quickly.

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