BNY’s Bob Savage highlights that the Reserve Bank of Australia kept its cash rate unchanged at 4.35% but maintained a clear tightening bias. The Australian central bank emphasized that further rate hikes remain possible if inflation pressures persist. This stance keeps policy expectations skewed toward additional tightening rather than cuts in the near term.

Australian policy steady with hawkish tilt

"The BoJ delivered a hawkish 25bp hike to 1.0% and will continue to scale back its JGB purchase program, while the RBA kept rates unchanged at 4.35% but maintained a tightening bias."

"RBA holds but remains vigilant: The Australian central bank has kept its cash rate at 4.35% while emphasizing that further tightening remains possible if inflation pressures persist."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)