RBA minutes: Eight of nine members backed May hike as inflation expectations risk grew
From the original
RBA minutes show eight of nine board members backed the May rate hike to 4.35%, citing rising inflation risks from the Gulf conflict, with markets now pricing a 75% chance of a further August rise. Earlier: Hunter: Inflation expectations drifting higher is an elevated risk RBA ca
Related speeches
4 itemsRBA's Hunter says rates may need to rise again as inflation risks stay tilted higher
May meeting, RBA set for third straight hike as Hormuz closure drives inflation surge
The Reserve Bank of Australia (RBA) is set to deliver its third consecutive rate hike on May 5, raising the cash rate by 25 basis points to 4.35%, driven by persistent inflation pressures exacerbated by the closure of the Strait of Hormuz. Per the full note [source], a recent Reuters poll indicates that over a third of economists now expect rates to exceed 4.60% by year-end, a significant shift from previous forecasts. This adjustment reflects heightened concerns over core inflation, which is now forecast to average 3.8% this year, up from 3.1% prior to the geopolitical tensions. The RBA's cautious stance is informed by its recent experience with inflation rebounding swiftly after rate cuts in 2025, prompting a more aggressive approach to monetary policy.
More like this
5 itemsBoE’s Greene warns waiting for second-round inflation effects would be too late
PBOC sets USD/ CNY central rate at 6.7298 (vs. estimate at 6.6981), strongest since 2 February 2023
RBA minutes show three reasons for hike to 4.60% and leave door open to further increases
PBOC is expected to set the USD/CNY reference rate at 6.6981 – Reuters estimate