The Reserve Bank of Australia (RBA) has kept its interest rate at 4.35% and has no immediate plans to adjust its monetary policy, due to ongoing inflationary pressures within the country.
Michelle Bullock reiterated the RBA's readiness to raise interest rates further to control inflation, maintaining a hawkish stance amid rising core inflation. The RBA expects core inflation, which stood at 3.9% in the last quarter, to decrease to the target range of 2-3% by the end of 2025.
There is growing expectation that the U.S. Federal Reserve (Fed) will begin cutting interest rates soon, leading investors to anticipate that the RBA might also lower rates in the fourth quarter, with a probability of about 50%. However, this rate cut will depend on additional data.
Source: Fxstreet