AUSTRALIA: RBA HOLDS RATES AT 4.10%, AS WIDELY EXPECTED – UOB
UOB Group’s Economist Lee Sue Ann reviews Tuesday’s interest rate decision by the RBA.
Key Takeaways
As expected, the Reserve Bank of Australia (RBA), for the third consecutive time, decided to leave the cash rate target unchanged at 4.10%. This is RBA Governor Philip Lowe’s final meeting as his seven-year term ends on 17 Sep.
Incoming RBA Governor, Michele Bullock, has said that inflation will be her first priority. Our view remains for the RBA to keep policy unchanged at the next meeting on 3 Oct, although we are penciling a chance it will hike one last time this year, taking the cash rate target to a peak of 4.35%.
All eyes will now turn to Australia’s 2Q23 GDP report due for release on 6 Sep, where the economy is expected to grow by 0.4% q/q, 1.8% y/y. Attention will then turn to RBA Governor Philip Lowe speech on Thu (7 Sep) titled `Some Final Remarks,' just 10 days before his term expires.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.