Rabobank strategist Elwin de Groot reports that the Reserve Bank of Australia (RBA) left rates unchanged, with markets initially reading the statement as dovish. Governor Bullock later pushed back, revealing the Board debated both holding and hiking and stating another increase is "quite possible". While the RBA hopes past tightening is enough, RaboResearch remains unconvinced and still expects one more rate hike later this year.
RBA signals further tightening risk
"The RBA left rates unchanged this week, and markets initially interpreted the accompanying statement as relatively dovish."
"Governor Bullock quickly pushed back against that view, revealing that policymakers debated both holding and hiking, and noting that another increase remains "quite possible"."
"The RBA clearly hopes previous tightening will prove sufficient."
"We remain unconvinced and continue to expect one more hike later this year."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
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