RBA to Hold Rates at 4.35% as Markets Doubt Hike, BNY Analysts Say
BNY analysts expect the Reserve Bank of Australia to keep its cash rate unchanged at 4.35%, noting that markets are skeptical about further tightening despite persistent inflation and robust economic data.
BNY’s Geoff Yu and David Tam anticipate the Reserve Bank of Australia will leave its cash rate at 4.35% at the upcoming policy meeting. The analysts highlight that market pricing reflects doubt about the RBA’s willingness to hike rates, even as inflation remains sticky and labor market data stays strong.
Recent indicators, including consumer spending and employment figures, point to ongoing economic resilience, but the central bank appears content to maintain its current stance. The Australian dollar may trade sideways as the decision is largely priced in.
Source: FXStreet Forex News