Australian Dollar: RBA’s hawkish hike caps upside – Commerzbank
Commerzbank’s Volkmar Baur reports that the Reserve Bank of Australia raised its cash rate by 25 bps to 4.6%, the highest level in about 15 years, and struck a notably hawkish tone.
In a move that capped the Australian Dollar's recent upside, the Reserve Bank of Australia (RBA) hiked its benchmark interest rate by 25 basis points to 4.6% on Tuesday. This decision, the highest in roughly 15 years, came with a notably hawkish tone from the central bank. Despite signaling that further rate hikes could be on the horizon as inflation expands beyond energy, the AUD's initial gains quickly evaporated. Markets had already priced in nearly two more hikes by mid-2027.
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