Economist at UOB Group Lee Sue Ann comments on the recent decision by the RBA to lift the OCR by 25 bps to 3.60% at its event on March 7.
Key Takeaways
“The Reserve Bank of Australia (RBA) decided to increase the cash rate target by 25bps to 3.60%. This is the 10th straight meeting that the RBA has raised rates. Taking into account today’s move, the cash rate has increased by 350bps since May 2022.”
“Once again, it was highlighted in the accompanying statement that ‘the Board’s priority is to return inflation to target’, and that ‘further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary’.”
“We are keeping our view of one more 25bps hike in Apr, which will take the OCR to 3.85%, as the RBA maintains a cautious approach. Attention will now turn to RBA Governor Philip Lowe’s speech at the AFR Business Summit in Sydney, early Wed (8 Mar) morning at 5.55am SGT.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD closes in on 1.0800 on broad USD weakness
EUR/USD preserves its bullish momentum and continues to push higher toward 1.0800 on Tuesday. The positive shift witnessed in risk sentiment, as reflected by the positive opening in Wall Street, doesn't allow the US Dollar to find demand and helps the pair keep its footing.
GBP/USD recovers from session lows, trades above 1.2250
GBP/USD has gained traction and recovered above 1.2250 on renewed US Dollar weakness on Tuesday. Ahead of the Fed's and the BOE's policy announcements, however, the pair seems to be having a difficult time gathering bullish momentum.
Gold drops below $1,970 as US yields push higher
Gold price extended its daily slide and declined below $1,970. The benchmark 10-year US Treasury bond yield is up nearly 2% on the day above 3.5% on improving risk mood, forcing XAU/USD to stay under bearish pressure ahead of Fed's policy decisions on Wednesday.
If Fed’s money printer goes brrr… will Bitcoin price hit $1 million?
Bitcoin has taken front and center stage after it restarted its 2023 rally in March. This resurgence of buying pressure pushed BTC to nine-month highs.
FX thoughts for the week
Do central banks face a conflict between their inflation mandate and financial stability? The markets are still grappling with this question and confidence in the financial sector has not fully recovered. For now, central banks are responding with a conditional no.