RBA preview: 25bp hike to 4.60% widely expected as sticky inflation lingers
AUD/USD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
Citi | Bearish | 0.6700 |
Crédit Agricole | Bullish | 0.7300 |
J.P. Morgan | Bullish | 0.6800 |
From the original
With the hike all but priced, the Australian dollar reaction is likely to turn on the tone of the statement rather than the decision itself. ING expects a hawkish hike to support AUD, though it flags a test below 0.70 against the US dollar as the near-term risk with the greenback
Related speeches
4 itemsRBA preview: 25bp hike to 4.60% widely expected as sticky inflation lingers - investingLive
RBA preview: A decisive hike to keep inflation in check
The RBA is poised to enact a hawkish 25 basis point rate hike on September 29, likely pushing the cash rate to 4.6%, in light of ongoing inflationary pressures and a tight labor market. Per the full note from ING, this increase aims to combat sticky core inflation bolstered by rising energy costs and resilient economic performance, particularly evident in the upside surprise in Q2 GDP growth. As the AUD currently trades at 0.6886, this policy shift could lend support to the currency amid challenging external conditions. However, external factors, including a deteriorating global economic environment, may still pose risks to the AUD's strength against its counterparts.
More like this
5 itemsFed’s Goolsbee: Labor market is steady, inflation side of Fed’s job is more important
How have interest rate expectations changed after this week's events?
ECB policymaker Rehn flags energy and AI risks as rate outlook stays uncertain
Tokyo core CPI jumps to 2.7%, fastest in 10 months, strengthening BOJ rate hike case