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Reserve Bank to spell out why it delivered rates pain
The Reserve Bank of Australia raised rates to 3.85% due to inflation above its 2-3% target, signaling more hikes may come to address tight labor and capacity pressures.
- On Tuesday, the Reserve Bank of Australia released minutes detailing the monetary policy board's February 4 decision to raise rates, explaining the full rationale behind the move.
- RBA staff assessments found that inflation in the second half of 2025 had picked up and was too high, while economy-wide capacity pressures contributed to the rise.
- Fresh RBA forecasts indicated trimmed mean inflation peaking at 3.7 per cent by mid-year, while board members judged financial conditions were not restrictive enough and data strengthened inflation concerns.
- Mortgage holders now face higher costs after the Reserve Bank raised rates, and the minutes' message on future hikes signals the RBA monetary policy board commitment to act as needed.
- With the board meeting on March 16, the minutes noted that two more inflation prints for January and February will be released before then, while Michele Bullock faced scrutiny.
10 Articles
10 Articles
RBA Says ‘Material’ Shift in Economic Outlook Drove Rate Hike
Australia’s central bank assessed the economic outlook had “materially shifted” when it decided to execute a U-turn and raise interest rates this month, even as policymakers stopped short of signaling a follow-up move, minutes of its Feb. 2-3 meeting showed.
Jobs data to guide RBA path – BBH
The post Jobs data to guide RBA path – BBH appeared on BitcoinEthereumNews.com. Brown Brothers Harriman’s (BBH) Global Head of Markets Strategy Elias Haddad points out that the RBA has resumed tightening, lifting the cash rate to 3.85% and signaling more hikes as demand and labor markets remain strong. Futures price further increases over twelve months. He sees Australia’s January labor force report as pivotal for rate expectations and AUD perfo…
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