Forex
Home›Forex›Central Banks›RBA seen lifting rates in September, with AUD set to r…
RBA seen lifting rates in September, with AUD set to react
FXStreet says the RBA is expected to raise the Official Cash Rate 25 bps to 4.60%, after Australia’s July CPI came in hotter than forecast.
FXStreet reports markets are widely expecting the Reserve Bank of Australia to raise the Official Cash Rate by 25 basis points to 4.60% from 4.35% on Tuesday. The move would come after the RBA held rates unchanged at its previous two meetings, with the decision due at 04:30 GMT and the Monetary Policy Statement released alongside it.
According to FXStreet, the Australian Dollar is bracing for a large reaction to the RBA announcement and RBA Governor Michele Bullock’s press conference at 05:30 GMT. The outlet links the focus on Bullock’s guidance to elevated underlying inflation, easing labor market conditions, and concerns that persistent price pressures remain.
FXStreet also points to Australia’s July inflation data, including a 1.0% monthly CPI increase versus the 0.8% expectation and annual inflation at 3.5%. It adds that trimmed-mean inflation stayed at 3.6%, and notes the RBA has flagged risks from higher energy prices, the Middle East conflict, and persistent domestic cost pressures.