{
  "id": 17922796,
  "title": "Australian dollar slips as RBA hikes rates in a split decision",
  "url": "https://urgent.news/2026/11/03/australian-dollar-slips-as-rba-hikes-rates-in-a-split-decision",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-03T05:58:38.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40447182/australian-dollar-slips-as-rba-hikes-rates-in-a-split-decision"
  },
  "original_language": "en",
  "account": "The Australian dollar experienced a slight decline on Tuesday following the Reserve Bank of Australia's (RBA) decision to raise interest rates for a fifth time this year, though the increase was smaller than anticipated due to the opposition of three board members. The local currency fell 0.2% to $0.6986, following a 0.5% decrease the previous day. Technicals turned bearish as the Australian dollar failed to surpass its 200-day moving average of $0.7058, potentially prompting a drop to $0.6895. The RBA board voted unanimously to increase the cash rate by 25 basis points to 4.85%, the highest level since 2008. This decision came after the inflation rate in the third quarter rose to 3.7%, surpassing the central bank's target range of 2% to 3%. Following the announcement, the probability of another rate hike in November fell to around 24%, down from 40% prior to the decision. Most analysts anticipated the RBA would be hesitant to tighten monetary policy so significantly, fearing the potential for a recession. Marcel Thieliant, head of Asia-Pacific economics at Capital Economics, noted that the RBA appeared more confident that policy was sufficiently tight compared to August, describing financial conditions as \"restrictive\" rather than \"somewhat restrictive.\" The bank indicated that they are likely to conclude their tightening cycle, with no further rate hikes anticipated until the end of the following year. In response to the RBA's economic outlook update, inflation forecasts were revised upward \"materially,\" with the central bank projecting elevated inflation rates to persist for an extended period, even if interest rates remain around current levels for a year or more. Australian 3-year bond futures increased by 3 ticks to 95.20, as investors adjusted their expectations for additional tightening. Conversely, yields on 10-year bonds reached near two-month lows at 5.145% following a surge in US Treasuries. Speculators had already reduced their long positions in the Australian dollar, partially due to concerns the RBA might not hike rates as expected, similar to New Zealand's central bank decision last week. The New Zealand dollar remained stable at $0.5614, having dropped 0.3% overnight. Major support for the Australian dollar is at the recent low of $0.5566, and a breach of this level could open the path for further decline to $0.5485.",
  "summary": "SYDNEY: The Australian dollar slipped on Tuesday after the country’s central bank lifted interest rates for a fifth time this year, but in a narrower call than many expected with three of the nine board members against a hike. The Aussie eased 0.2% to $0.6986, having slipped 0.5% overnight. The failure to hold above the 200-day moving average of $0.7058 turned technicals bearish and risked a…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}