Australian Dollar: RBA holds rates but downside bias persists – Commerzbank
Commerzbank’s Volkmar Baur reports that the Reserve Bank of Australia (RBA) left interest rates unchanged in a unanimous decision, with forecasts showing higher unemployment and lower short-term inflation.
The Reserve Bank of Australia (RBA) decided to keep interest rates unchanged in a unanimous vote, according to Commerzbank's Volkmar Baur. The move leaves market participants anticipating a rate cut in the future, which could keep the Australian Dollar (AUD) under pressure in the coming months. The decision did not meet expectations of a dissenting vote in favor of a rate hike, and the statement did not appear particularly hawkish.
Inflation forecasts were revised downward for the short term, while only medium-term inflation forecasts were revised upward, suggesting the possibility of further rate hikes. However, the RBA's next move is likely to be a rate cut, and the AUD is expected to remain under pressure in the coming months.
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