The Reserve Bank of Australia (RBA) decided to maintain its interest rate at 4.35% during its latest meeting. The RBA acknowledged that inflation risks remain, but Governor Michele Bullock signaled that they would not consider raising interest rates again.

Meanwhile, investors estimate a 55% chance of a 25 bps rate cut by the end of this year. It is also anticipated that the RBA will be the last central bank among the G10 countries to lower interest rates, potentially cutting rates later this year to address weak economic activity and easing inflationary pressures. Additionally, economic stimulus from China might slightly help Australia’s economy recover.

Source: Fxstreet