Australian Dollar: RBA softens hawkish stance – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad reports the Reserve Bank of Australia (RBA) delivered a less hawkish hold, keeping rates at 4.35% and judging policy “somewhat restrictive” as the labor market has eased more than expected.
Brown Brothers Harriman's Elias Haddad reports the Reserve Bank of Australia (RBA) softened its hawkish stance, maintaining the policy rate at 4.35% and labeling policy "somewhat restrictive" as the labor market has eased more than anticipated. The RBA signaled it is prepared to hike the cash rate further if inflationary risks to the upside emerge.
The AUD/USD briefly dipped following the decision but recovered during Governor Bullock's press conference. The RBA raised its unemployment rate projection and lowered its policy-relevant trimmed mean inflation projections through June 2027. Commodity-linked exposures to energy, AI, and defense continue to support the Australian Dollar.
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