Pundits and investors expect the RBA to leave its cash rate unchanged at 4.35% when the board meets on Tuesday
Reserve Bank governor Michele Bullock will speak to the media an hour after the board’s interest rate decision is released.Reserve Bank governor Michele Bullock will speak to the media an hour after the board’s interest rate decision is released.The Reserve Bank is widely tipped to leave its key interest rate on hold at this week’s board meeting, but economists are split on how soon borrowers can expect rate relief.
That tolerance was aimed in part to “preserve as much as possible of the gains that have been made in reducing unemployment and underemployment in recent years”, he said. The corollary, though, was that Australia’s interest rates would also likely ease slower than elsewhere. “So far the evidence indicates that the balance of risks for the RBA should be shifting to consumer spending surprising further to the downside rather than inflation proving more persistent,” he said. “Indeed the news on the inflation front is encouraging”, with the six-month annualised pace of price increases on track to be 3.2% for the current quarter – or just outside the target band.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Interest rates: Traders, investors jostle over the timing of Federal Reserve, RBA rate cutsBond investors expect the Fed to start cutting rates mid-year and the RBA to follow in September, despite a slightly hotter-than-expected US inflation print.
Read more »
Reserve Bank tipped to keep interest rates on hold amid lingering worries about inflationThe central bank will announce its decision at 2pm, with financial experts and economists widely forecasting the cash rate will remain at the 12-year high.
Read more »
ASX CBA: Macquarie says time to sell Commonwealth Bank, National Australia Bank, Westpac and ANZThe broker has taken a “more aggressive stance” on Australia’s banking sector, saying that share prices don’t match the outlook for earnings.
Read more »
Interest rates: RBA tipped to hold cash rate this weekBond yields are soaring after US data dashed hopes of early rate relief from the US Federal Reserve, pushing out expectations of a mid-year move from the Reserve Bank.
Read more »
Shrinking inflation gives RBA chance to cut rates mid-yearThe leap year might deliver enough extra activity to prevent the economy from contracting through this year’s March quarter, says KPMG’s chief economist.
Read more »
‘Overkill’: RBA boss lashed on rate hikeThe Reserve Bank’s November rate hike was “overkill”, economists have cautioned, after fresh GDP data revealed a sharp decline in household spending on non-essential items such as cars, clothes and eating out in the final three months of 2023
Read more »