Financial markets reduced the estimated June 2023 cash rate target to 3.54 per cent from a previous implied peak of 3.65 per cent before the decision.
Financial markets reduced their estimated June 2023 cash rate to 3.54 per cent from a previous implied peak – or terminal rate – of 3.65 per cent before the decision.P/ASX 200 Index rallied as much as 0.3 percentage points and the Australian dollar fell 0.1 per cent at the outset upon relief that the Reserve Bank declined a more hawkish increase of 0.65 percentage points, as speculated by some forecasters before the meeting.
“The RBA is not on a predetermined policy path,” Mr Aird said. “The RBA is not on a crusade to hasten a drop in the rate of inflation at all costs.”Aside from the fact that Australia’s inflation is not as high as that of other advanced economies, such as the US and the euro area, the Commonwealth Bank economist underscored that Australia’s official inflation target was also structurally higher.
ANZ economist David Plank said the Reserve Bank’s objective was to get to a neutral cash rate where monetary settings are neither stimulatory nor restrictive.
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