All articles tagged with #rba
Australia posted a 2.1% year‑on‑year GDP rise in Q2 and 0.4% quarter‑on‑quarter, topping forecasts of 1.8% and 0.3%. Growth was driven by private demand and mining exports, while households remained cautious. The stronger print gives the Reserve Bank of Australia more room to tighten as July inflation came in at 3.5%, with officials expecting inflation to gradually ease toward the 2–3% target by late 2027.
After stronger-than-expected inflation data, economists expect the RBA to hold rates this week, but a housing market downturn could create near-term turbulence—the so‑called "air pocket"—with a minority forecasting a rate increase; most predictions are for a hold, but about half of experts foresee at least one more hike this year, potentially lifting the cash rate to around 4.6%, while NAB warns of a roughly 10% housing downturn.
The Reserve Bank of Australia raised its cash rate to 4.35%, the third consecutive hike, citing persistent inflation and higher fuel costs tied to Middle East tensions, and warned inflation will stay above the 2-3% target for some time, with forecasts implying further tightening into 2026 even as growth outlook softens.
Australia's Q1 CPI rose 4.09% year-on-year and 1.4% quarter-on-quarter, cooler than the 4.2% forecast but the highest in over two years; March inflation climbed 4.6%, underscoring persistent price pressures and keeping the case for further RBA rate hikes on the table as officials say inflation will stay above the 2%–3% target for some time. GDP grew 2.6% year-on-year in Q4, with oil-price risks adding to policy challenges ahead of the next RBA meeting.
Australia's central bank hiked the cash rate by 25 basis points to 4.1%, the highest since April 2025, citing inflation staying above target and upside risks from the Iran war, with a tight labor market and solid growth underpinning the decision which passed 5-4.
Asian stocks mostly slipped as tech-led declines weighed on sentiment; Japan’s Nikkei 225 rose about 0.7% ahead of a national election, while Australia’s ASX 200 fell after hawkish RBA remarks, with China steadier and U.S. futures edging lower as Amazon tumbled on a larger 2026 capex forecast.
Australia's inflation rose to 3.2% in Q3, the highest in over a year, surpassing forecasts and pushing beyond the Reserve Bank's target, which suggests that rate cuts may be delayed as inflation remains persistent despite economic growth.
Australia's central bank cut interest rates to 3.6%, the lowest since April 2023, while downgrading its economic growth forecast to 1.7% for the year, citing subdued demand and inflation easing, but remains cautious about potential further tightening to control inflation amid global trade uncertainties.
Asian stock markets mostly rose, with Japan and Australia reaching record highs amid optimism from the U.S.-China tariff truce extension and the Reserve Bank of Australia cutting interest rates as expected, supporting regional investor sentiment.
Australia's inflation rate in Q2 dropped to 2.1%, the lowest since March 2021, supporting the case for a rate cut by the Reserve Bank of Australia, which has already reduced rates twice this year. Despite the lower inflation, the RBA has kept rates steady at 3.85%, citing strong inflation indicators and labor market conditions, but analysts expect a rate cut in August due to global economic slowdown and rising unemployment.
Reserve Bank of Australia (RBA) Governor Michele Bullock stated uncertainty about a potential interest rate cut in February, emphasizing the need to be data-driven. While not ruling out a rate cut, Bullock highlighted the importance of upcoming economic data, including jobs and CPI reports, in guiding the RBA's decision. This uncertainty is expected to keep the Australian dollar volatile until the next RBA meeting on February 18.
The Reserve Bank of Australia has maintained its benchmark interest rate at 4.35% for the eighth consecutive meeting, citing high underlying inflation despite a decline in headline inflation to 2.8% in the third quarter. The RBA expects inflation to remain above its 2%-3% target until 2026, with uncertainties in labor market conditions and external geopolitical risks influencing future economic outlooks.
The Reserve Bank of Australia's February meeting minutes revealed that the board considered the possibility of a 25 basis points rate hike or maintaining the current rate, with the latter being the stronger option due to balanced risks to the outlook. While data provided more confidence in inflation returning to target, the board acknowledged the need for more time to be confident in this. Despite this, the board agreed it was appropriate not to rule out another rate increase, but also noted that hiking rates would not prevent them from cutting if the economy weakens. The minutes also highlighted weaker-than-expected data on the labor market and consumption, as well as the impact of high inflation, higher tax, and interest payments on consumption.
The Reserve Bank of Australia has updated its economic forecasts for 2024 and 2025, with slight downward adjustments in GDP and CPI expectations. The revisions indicate a more favorable inflation outlook and potential easing of rates over time, although inflation forecasts remain at the high end of the RBA's target range. The forecasts also point to continued but slightly tempered economic growth, with modest adjustments in inflation expectations suggesting a stabilization of price increases.
The Reserve Bank of Australia (RBA) has decided to keep the cash rate at 4.35%, as expected, while acknowledging that further interest rate hikes cannot be ruled out. Despite signs of easing inflation, it remains high at 4.1%, with goods price inflation lower than forecasted. The RBA remains attentive to inflation risks and uncertain economic outlook, emphasizing the need for sustainable movement towards the target range. The Australian dollar climbed slightly following the report, as the RBA's language indicated that a further interest rate increase is still a possibility.