Heads up: RBA rate decision due shortly as markets brace for 25 bps hike
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Heads up for the Australian dollar as we are less than a half hour away from the latest RBA monetary policy decision. The central bank is widely expected to raise the cash rate by 25 bps to 4.60%, which would mark a fourth rate hike this year and take borrowing costs to their hig
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4 itemsHeads up: RBA monetary policy decision due at the bottom of the hour
Heads up: RBA monetary policy decision at the bottom of the hour
Heads up: RBA monetary policy decision set for the bottom of the hour
The desk anticipates a hawkish shift from the RBA, likely raising the cash rate to 4.35% in response to persistent inflation pressures, as highlighted in the recent commentary from Justin Low. This move essentially reverses the brief easing cycle observed earlier in 2025, bringing rates back to levels not seen since 2011. Per the full note [source], the RBA's decision comes amid rising core inflation, currently at 3.5%, and geopolitical tensions that could further complicate their policy stance. With traders pricing in an 82% probability of a rate hike today and additional hikes by September, the market is positioned for a more aggressive RBA in the near term.
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