Australian Dollar: RBA hike reinforces hawkish stance – Deutsche Bank
Deutsche Bank’s macro strategy team notes that the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60%, in line with expectations. The RBA signalled that inflation remains too high and left the door open to further tightening if needed.
Deutsche Bank’s macro strategy team reports that the Reserve Bank of Australia (RBA) increased the cash rate by 25 basis points to 4.60%, as anticipated. The RBA also indicated that inflation is still too high and is prepared to raise the target rate further if necessary. Australia’s 10-year government bond yield reached a post-2011 high of approximately 5.4% following the rate hike.
The RBA's decision to raise the cash rate to 4.60% was expected by markets, and the bank stated they would increase the target rate if required. Simultaneously, Australia’s 10-year government bond yield surged by 0.2 basis points to a post-2011 high of 5.42%.
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