Free Trial

MNI RBA Review - April 2023: April Pause, Tightening Bias Intact

EXECUTIVE SUMMARY:

  • The RBA left rates unchanged at 3.6% at its April 4 meeting, after ten consecutive hikes worth 350bp. While it softened the tone of the statement, it retained its tightening bias. The Board decided to pause due to numerous indicators signalling a peak in inflation, a slowdown in consumption, the tightening of global financial conditions and to give it more time to "assess the impact" of previous tightening.
  • The language around future rate hikes was moderated to "may well be needed" from "will be needed", thus keeping the RBA's options open. But it said "when" rates will need to rise rather than "if". As a result, future meeting outcomes are going to be extremely data dependent with May hinging on the Q1 CPI report (April 26) and updated RBA forecasts.

Click to view full review:

RBA Review - April 2023.pdf

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.