The RBA’s interest rate decision is a balancing act between Christmas, unemployment, and a lame duck Trump
With inflation still running away, the Reserve Bank is likely to once again raise interest rates today. How does unemployment factor into things? The post The RBA’s interest rate decision is a balancing act between Christmas, unemployment, and a lame duck Trump appeared first on Crikey .
The Reserve Bank of Australia (RBA) is set to raise the Official Cash Rate (OCR) by 25 basis points to 4.85%, according to expectations. This will be the fifth rate hike in 2026 and the OCR will reach an 18-year high. The decision will be made on Tuesday, announced at 03:30 GMT, with Governor Michele Bullock delivering a press conference at 04:30 GMT.
Inflationary pressures are driving the rate hike, with Australia's annual inflation rate at 3.9% in Q3, above the 2–3% target. RBA Governor Bullock hinted at the need for further hikes to prevent inflation from becoming embedded in expectations. The AUD is struggling to stay above the 0.7000 mark against the USD, and the RBA's decision and Governor Bullock's remarks are expected to influence the currency's near-term performance.
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- RBA expected to raise interest rate to 4.85% fxstreet.com
