RATE REACTION AS GLOBAL MARKETS CALM
As expected the Reserve Bank of Australia (RBA) decided to hold interest rates at 4.35% yesterday, but the revelation from governor Michele Bullock that the board seriously considered a rate hike during its meeting this week, as well as her suggestion there may not be a rate cut for six months, has caused a fair amount of reaction overnight.
The Australian describes yesterday’s update, which included the bank increasing its underlying inflation forecasts, as “a blow to [Treasurer] Jim Chalmers’ claim his budget strategy was making the RBA’s job easier”.
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