Reported 8 months ago
Australia's Reserve Bank of Australia surprised traders with a hawkish stance, leading them to increase bets on an interest rate hike in August. Following Governor Michele Bullock's comments on persistent inflation, money markets shifted to pricing a 20% chance of a rate increase at the next meeting. This unexpected development caused three-year bond yields to rise significantly, indicating a potential tightening of interest rates in the future. While economists still predict a rate cut in 2025, the RBA's stance suggests a more cautious approach in addressing inflation concerns.
Source: YAHOO