Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI RBA WATCH: Pause Priced In Despite Persistent Inflation

(MNI) Sydney

The market expects the RBA to pause interest rate hikes at the April 4 board meeting, but persistently high inflation could still force its hand.

The Reserve Bank of Australia is expected to pause its tightening cycle at its April 4 board meeting, but a 25bp hike is not out of the question as it continues to battle inflation persistently well in excess of its 2-3% target.

Another 25bps would be the sixth consecutive quarter-point increase and 11th cumulative hike since the Reserve began tightening from a record low 0.1% in May 2022 and would push the official cash rate to an 11-year high of 3.85%. A pause would mean the RBA slips further behind its international peers.

Keep reading...Show less
467 words

To read the full story

Why Subscribe to

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.

The Reserve Bank of Australia is expected to pause its tightening cycle at its April 4 board meeting, but a 25bp hike is not out of the question as it continues to battle inflation persistently well in excess of its 2-3% target.

Another 25bps would be the sixth consecutive quarter-point increase and 11th cumulative hike since the Reserve began tightening from a record low 0.1% in May 2022 and would push the official cash rate to an 11-year high of 3.85%. A pause would mean the RBA slips further behind its international peers.

Keep reading...Show less