'Stand Ready' for More Interest Rate Rises, IMF Says
The IMF said resilient spending and higher energy costs could keep inflation elevated, with markets pricing an 87% chance of another RBA hike.
- On Wednesday, the Federal Reserve lifted the target interest rate range to 3.75% to 4.00%, prompting local analysts to prepare for the Reserve Bank of Australia's upcoming policy meeting on September 28-29.
- Amid persistent inflation pressures and uncertainty regarding financial conditions, the International Monetary Fund said on Thursday that the Reserve Bank may need to raise interest rates further.
- Moomoo Australia and New Zealand chief market strategist Tapas Strickland warned that local equities would "face a testing morning," noting that while the rate hike was priced in, the accompanying message surprised investors.
- Markets are currently pricing an 84% likelihood that the Reserve Bank will deliver a 25-basis-point rate rise to 4.6% on September 29, reflecting expectations for further monetary tightening.
- Returning inflation to target is the International Monetary Fund's 'top priority,' as markets imply the cash rate could reach 4.85% by early 2027 amid ongoing efforts to tame stubborn secular inflation.
14 Articles
14 Articles
IMF says Australia may need further interest rate rises to tame inflation
SYDNEY, Sept 17 (Reuters) - The International Monetary Fund (IMF) said on Thursday that Australia's central bank may need to raise interest rates further, with inflation expected to remain elevated this year before gradually cooling into the central ...
IMF Urges RBA to Stay Hawkish, Warns of Inflation Upside Risks
Australia’s RBA Cash Rate May Not Have Peaked—IMF Warns Oil Could Force Another Hike - ActionForex
The International Monetary Fund said the Reserve Bank of Australia should remain prepared to raise interest rates further, citing persistent underlying inflation and uncertainty over whether financial conditions are sufficiently restrictive. The warning reinforces expectations that the current 4.35% cash rate may not mark the peak. Markets assign roughly an 80–87% probability to a 25bp […]
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- 38% of the sources are Center, 37% of the sources lean Right
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