The post RBA set to leave interest rate unchanged for fifth straight time appeared on BitcoinEthereumNews.com.

Interest rate in Australia is set to stay steady at 4.35% for the fifth consecutive meeting in May. Reserve Bank of Australia Governor Michele Bullock will hold a press conference at 05:30 GMT. The Australian Dollar could see a big reaction to RBA’s policy statement and Bullock’s words. The Reserve Bank of Australia (RBA) is unlikely to give into the pressure of a dovish policy pivot, as adopted by the Bank of Canada (BoC) and the European Central Bank (ECB) when it concludes its policy meeting on Tuesday. The RBA is set to keep the Official Cash Rate (OCR) unchanged at 4.35% for the fifth meeting in a row in June. The decision will be announced at 04:30 GMT, while Governor Michele Bullock’s press conference will follow at 05:30 GMT. Reserve Bank of Australia expected to extend the pause, but what’s next? Economists are widely expecting the RBA to hold its borrowing rate at a 12-year high at yet another policy meeting, with Governor Michele Bullock likely to retain her hawkish rhetoric during the press conference. In lieu of the stickier nature of inflation, the Australian central bank could leave the door ajar for a rate hike this year, especially after the Minutes of the RBA’s May meeting showed that the board members considered increasing interest rates. However, the RBA could refrain from explicitly signaling a policy pivot in the upcoming meetings, maintaining a ‘higher rates for longer’ view. The May policy statement read, “recent data have demonstrated that the process of returning inflation to target is unlikely to be smooth. Persistence of services inflation is a key uncertainty.” Therefore, “not ruling anything in or out on future decisions,” the statement added. The trimmed mean Consumer Price Index (CPI), the RBA’s measure of underlying inflation, ticked lower from 4.2% YoY…

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Filed under: News - @ June 17, 2024 11:04 pm