RBA set to keep interest rates steady at 3.6%

The officials from Australia’s central bank, the Reserve Bank of Australia (RBA), are expected to meet on November 3-4 this ￰0￱ the meeting, officials will leave rates unchanged at 3.6%, and RBA Governor Michele Bullock will refrain from guiding as the economic outlook becomes more unpredictable, sources close to the matter ￰1￱ expectations arise after a reliable survey highlighted that the Reserve Bank will maintain rates at 3.6% following the escalation of consumer prices that rose beyond earlier predictions. Additionally, overnight-indexed swaps, a type of financial derivative, suggested the likelihood of a suspension in rate changes, with the next possible cut not anticipated until May of next ￰2￱ to Assistant Governor Sarah Hunter, Reserve Bank of Australia staff are actively reviewing and analysing the latest economic trends as they prepare updated forecasts for the November Monetary Policy Statement (MPS).

The RBA raises concerns about the persistent nature of inflation In a statement, Sam Konrad, an Investment Manager for the Asian Equity Income strategy in Singapore, mentioned that the RBA might find it difficult to reduce rates again soon, citing the latest inflation figures. “Looking at the Australian economy, there are mixed signals, so I don’t think there’s an urgent need to reduce rates further from ￰3￱ must ensure inflation stays under control,” Konrad ￰4￱ situation has raised controversy among individuals who are wondering about the country’s central bank’s final ￰5￱ address these concerns, the final rate decision and official statement will be made public at 2:30 ￰6￱ time on Tuesday, November 4, according to ￰7￱ this time, investors remain alert to see if any board member opposes this ￰8￱ sources also suggested that the RBA would announce its quarterly economic prediction update at this ￰9￱ one hour after this announcement, Bullock is set to hold a press conference.

Australia’s anticipated rate pause comes after the Federal Reserve’s recent decision to reduce its key rate for the second consecutive ￰10￱ the other hand, economists stressed that although markets were cautious about easing rates again in December, there are still strong odds that the US central bank may execute this decision as job growth slows ￰11￱ the meantime, the outlook for RBA policy changed drastically last week after core inflation surged by 1% in the third ￰12￱ percentage increases from a revised 0.7% in the previous three months. Interestingly, core prices reached the highest point of the RBA’s target range of 2-3% ￰13￱ revealed that the increase in core inflation was extensive, confirming the central bank’s concerns that inflation, particularly in services, is becoming ￰14￱ Australian dollar secures the top position as the strongest leading currency In Australia, domestic demand is increasing due to tax reductions from the government and energy rebates introduced earlier this year, while the previous rate cuts implemented by the RBA are gradually affecting the ￰15￱ a result, the Australian dollar was ranked as the strongest leading currency last ￰16￱ achievement comes as the currency gains popularity among investors, thanks to a tougher approach from the RBA, as well as improved risk appetite and reduced trade conflicts between the US and China, according to Alex Loo and Prashant Newnaha from TD Securities ￰17￱ reports have also highlighted that credit growth and house prices are surging, indicating that financial conditions are not overly restrictive.

However, Bullock noted that the current policies remain a bit restrictive. “The underlying momentum of inflation is much stronger than what the RBA anticipated,” stated George Tharenou from UBS ￰18￱ to Tharenou, the main question is whether to delay the next rate cut or determine when rates will reach their lowest ￰19￱ your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.