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Critical Fixed Income Considerations amid RBA’s Swift Policy Moves
In May 2022, the Reserve Bank of Australia (RBA) was among the last major central banks to begin raising interest rates during the post-COVID-19 monetary tightening cycle. In Q1 2026, the RBA is not taking any chances with inflation, becoming the first major central bank to implement two consecutive 25 bps rate hikes (in February and March), increasing the cash rate target from 3.6% to 4.1%, returning the rate to levels last seen in May 2025. The decision was driven by persistently above-target inflation and further reinforced by the disruptions in energy supply due to the ongoing conflict in the Middle East. All of ... (full story)