A lower inflation rate. "The Board needs to be confident that inflation is moving sustainably towards the target range," the RBA said in a statement after its last meeting. That range the RBA wants to get to is 2-3 per cent, but it's currently at 3.8 per cent. When you hear the RBA or economists talk about "inflation", they're usually talking about the Consumer Price Index (CPI).$AUD (BK20039)$$S&P/ASX 200 OPIC (OXJO.AU)$
Currently, the cash rate target is 4.35 per cent. The cash rate target is a figure set by the Reserve Bank of Australia (RBA). The figure influences how much commercial banks charge customers for borrowing money. But when the RBA changes the cash rate target, interest rates for mortgages don't automatically change. That's something the individual banks decide. Banks usually put out a statement saying whether they'll change their rates after an RBA meeting. If...
Data last week showed Australia’s core inflation unexpectedly decelerated in the quarter ended June, prompting money markets to swing to pricing an 88 per cent chance of a rate cut in December, according to meeting-dated OIS contracts, and fully price one for February. The yield on Australia’s policy-sensitive three-year bond hit the lowest level since April on Friday, in response to the consumer price index (CPI) and dovish shift at global central banks. The Australian dollar also slid against...
Australia’s policy decision follows a highly-anticipated meeting by the Federal Reserve last week, when chair Jerome Powell signalled that the US is on course to begin easing in September. The Bank of England also last week cut rates for the first time since early 2020 and signalled further reductions ahead.$AUD (BK20039)$$S&P/ASX 200 OPIC (OXJO.AU)$
Any hawkish signs from the RBA are likely to further batter Australian stocks, with regional markets already nursing steep losses from a broader risk-off sentiment. The ASX 200 fell sharply in recent sessions after hitting record highs as recently as last week. High-for-longer interest rates bode poorly for most Australian businesses, especially given that they are already grappling with weak overseas demand. Australian bank stocks, however, may ...
Investors now believe the next move by the Reserve Bank of Australia will be an interest rate cut rather than a rate rise, after underlying inflation came in only slightly above official forecasts in June. Trimmed mean inflation, the RBA’s preferred measure of underlying price pressures, eased to 3.9 per cent in June from 4 per cent in March, the Australian Bureau of Statistics said on Wednesday.$S&P/ASX 200 OPIC (OXJO.AU)$$ASX Ltd (ASX.AU)$$AUD (BK20039)$
Info via Reuters Polling on the upcoming Reserve Bank of Australia meeting, showing that the RBA is expected to keep cash rate at 4.35% on Tuesday, August 6 No rate cuts seen until Q1 2025 despite inflation easing 32 out of 33 economists predict no change at the August meeting Market pricing shows 55% chance of a cut by end-2024 Inflation forecast: 3.4% in 2024, 2.8% in 2025 https://www.forexlive.com/news/australian-q2-core-inflation-08-qq-expected-10-20240731/
"The Board needs to be confident that inflation is moving sustainably towards the target range," the RBA said in a statement after its last meeting.
That range the RBA wants to get to is 2-3 per cent, but it's currently at 3.8 per cent.
When you hear the RBA or economists talk about "inflation", they're usually talking about the Consumer Price Index (CPI). $AUD (BK20039)$ $S&P/ASX 200 OPIC (OXJO.AU)$
The cash rate target is a figure set by the Reserve Bank of Australia (RBA).
The figure influences how much commercial banks charge customers for borrowing money.
But when the RBA changes the cash rate target, interest rates for mortgages don't automatically change. That's something the individual banks decide.
Banks usually put out a statement saying whether they'll change their rates after an RBA meeting.
If...
The yield on Australia’s policy-sensitive three-year bond hit the lowest level since April on Friday, in response to the consumer price index (CPI) and dovish shift at global central banks. The Australian dollar also slid against...
The ASX 200 fell sharply in recent sessions after hitting record highs as recently as last week.
High-for-longer interest rates bode poorly for most Australian businesses, especially given that they are already grappling with weak overseas demand.
Australian bank stocks, however, may ...
Trimmed mean inflation, the RBA’s preferred measure of underlying price pressures, eased to 3.9 per cent in June from 4 per cent in March, the Australian Bureau of Statistics said on Wednesday. $S&P/ASX 200 OPIC (OXJO.AU)$ $ASX Ltd (ASX.AU)$ $AUD (BK20039)$
No rate cuts seen until Q1 2025 despite inflation easing
32 out of 33 economists predict no change at the August meeting
Market pricing shows 55% chance of a cut by end-2024
Inflation forecast: 3.4% in 2024, 2.8% in 2025
https://www.forexlive.com/news/australian-q2-core-inflation-08-qq-expected-10-20240731/