Australian Dollar: RBA hike reinforces hawkish stance – Deutsche Bank

FXStreet Insights Team FXStreet

Deutsche Bank’s macro strategy team notes that the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60%, in line with expectations. The RBA signalled that inflation remains too high and left the door open to further tightening if needed. Australia’s 10-year government bond yield is now at a post-2011 high around 5.4%.

RBA signals willingness to tighten further

"The Reserve Bank of Australia delivered a 25bp rate hike, which takes its cash rate target to 4.60%. The move was expected by markets, and its statement said that “inflation is still too high” and they would be willing to raise “the cash rate target further if needed.”"

"Meanwhile, Australia’s 10yr government bond yield is up +0.2bps this morning at a post-2011 high of 5.42%."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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FXStreet Insights Team

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