RBA delivered a risk management hike – TD Securities
TD Securities Macro Research’s Reserve Bank of Australia (RBA) note argues that the September 25bps hike to 4.60% was a risk-management move rather than the start of a new tightening cycle. The team expects no further RBA hikes in 2026 and for policy to remain on hold through 2027.
The Reserve Bank of Australia (RBA) raised the cash rate to 4.60% on September 25, according to TD Securities Macro Research. This hike was described as a risk-management move by the bank, rather than the beginning of a new tightening cycle. TD Securities does not anticipate any further RBA hikes in 2026 and expects the bank to maintain a hold on policy through 2027.
The analysts from TD Securities differ from the market's hawkish interpretation of the RBA's statement, which could potentially lead to hikes in December if the bank does not act by November.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
