RBA: Board expects to increase interest rates further over the period ahead


Following are the key headlines from the December RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.

Board resolute in determination to return inflation to target, will do what is necessary to achieve that.

Board expects to increase interest rates further over the period ahead.

Inflation in australia is too high.

Board closely monitoring the global economy, household spending and wage and price-setting behaviour.

Size and timing of future increases determined by data and outlook for inflation and labour market.

A further increase in inflation is expected over the months ahead.

Australian economy is continuing to grow solidly.

Board is not on a pre-set course.

Labor market remains very tight.

Household spending is expected to slow over the period ahead.

Path to achieving the needed decline in inflation and achieving a soft landing for the economy remains a narrow one.

Board’s priority is to re-establish low inflation and return inflation to the  2–3  per cent range over time.

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD retreats to 1.0750 area as USD recovers

EUR/USD retreats to 1.0750 area as USD recovers

EUR/USD stays under modest bearish pressure and trades slightly below 1.0750 in the European session on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.

EUR/USD News

GBP/USD drops below 1.2500 ahead of Thursday's BoE event

GBP/USD drops below 1.2500 ahead of Thursday's BoE event

GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.

GBP/USD News

Gold stays near $2,310 as US yields edge higher

Gold stays near $2,310 as US yields edge higher

Following a quiet Asian session, Gold retreated slightly to the $2,310 area. Hawkish tone of Fed policymakers help the US Treasury bond yields edge higher and make it difficult for XAU/USD to gather bullish momentum.

Gold News

SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51

SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51

Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version. 

Read more

Softer growth, cooler inflation and rate cuts remain on the horizon

Softer growth, cooler inflation and rate cuts remain on the horizon

Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.

Read more

Forex MAJORS

Cryptocurrencies

Signatures