RBA leaves cash rate unchanged at 4.35% in June monetary policy meeting, as expected

RBA raises cash rate to 4.35% in May monetary policy meeting, as expected

The Reserve Bank of Australia (RBA) has raised its cash rate to 4.35% in the May monetary policy meeting, a move anticipated by market participants. Per the full note [source], traders had priced in approximately 85% odds of a 25 basis point increase, with expectations for a total of around 61 basis points of hikes by year-end. This decision aligns with the broader trend of central banks tightening monetary policy in response to persistent inflationary pressures. As the RBA continues to navigate these economic challenges, market reactions will be closely monitored for further directional cues.

RBA holds rates at 4.35%, signals further hikes still possible - recap

Reuters poll in near unanimous: RBA seen holding at 4.35% on June 16

Westpac sees upside inflation risks after RBA lifts cash rate to 4.35% in 8-1 vote

The desk sees the RBA's recent rate hike as a signal of persistent inflation pressures, particularly influenced by geopolitical factors. Per the full note [source], the RBA raised its cash rate by 25 basis points to 4.35%, with an 8-1 vote reflecting a stronger consensus than the previous meeting. However, the dovish tone from Governor Bullock suggests that while further tightening is possible, the June meeting could see a pause. This nuanced stance is critical as it indicates a balancing act between combating inflation and acknowledging potential economic headwinds.