In its latest meeting, the Reserve Bank of Australia hiked the key interest rate by 50 basis points to 1.85%. According to analysts, the RBA will likely raise again in September but with a 25 bps rate hike. They see the rate peak at 3.10% by early next year.
August\u2019s announcement dropped previous references to withdrawal of extraordinary monetary support. Instead, this phrase was replaced with more standard language that the increase in interest rates is a further step in the normalization of monetary conditions in Australia.
The new language adopted by policymakers and RBA Minutes hints that the RBA officials believe it is now a bit further along the monetary tightening path, and perhaps does not need to move at an accelerated 50 bps pace anymore, rather there is a trend to adopt a more dovish stance
The RBA indicated it is seeking to bring inflation down in a way that keeps the economy on an “even keel”. This language is also consistent with a more measured pace of rate hikes. Against this background, it is now expected that the central bank could revert to a steady pace of consecutive 25 bps rate hikes at its next several meetings in September, October, November, December and February, which would bring the Cash Rate to 3.10% by early 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"
In its latest meeting, the Reserve Bank of Australia hiked the key interest rate by 50 basis points to 1.85%. According to analysts, the RBA will likely raise again in September but with a 25 bps rate hike. They see the rate peak at 3.10% by early next year.August\u2019s announcement dropped previous references to withdrawal …<\/p>\n","protected":false},"author":13,"featured_media":52068,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[8143,7035],"class_list":["post-69700","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-interest-rate-hikes","tag-rba"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/69700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=69700"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/69700\/revisions"}],"predecessor-version":[{"id":69704,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/69700\/revisions\/69704"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/52068"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=69700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=69700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=69700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}