The Reserve Bank of Australia (Central Bank) raised the official cash rate of the policy interest rate by 25 basis points (bp) to 3.35% on the 7th. It is the highest level in 10 years. He reiterated his view that more interest rate hikes would be needed, and struck a more hawkish tone than many had expected.
Removed previous guidance that policy trajectories are not predetermined. Inflation is expected to ease to around 3% by mid-2025, at the high end of the central bank’s 2-3% range, he said.
The Australian dollar climbed to $0.6940 after the central bank’s announcement. The peak policy interest rate that the market is pricing in rose from 3.75% before the announcement to 3.9%. It has priced in a rate hike in at least March and April.
“The Governing Council believes that further interest rate hikes will be needed in the coming months to bring inflation back to target and make high inflation temporary,” Bank of England Governor Lowe said in a statement.
(Source: Minkabu)
Although it is already reported in Tokyo time, AUD is a buying perspective. From here, I went to buy AUDNZD earlier.
