Central Banks
Australia Set to Extend Rate-Rise Pause as Inflation Cools
- RBA standing pat would contrast with expected Fed, ECB hikes
- Governor Lowe willing to tolerate slower return to CPI target
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Australia’s central bank is set to extend a pause in interest-rate increases on Tuesday following a deceleration in inflation that allows the board more time to assess the economic impact of its policy tightening to date.
The Reserve Bank will keep its cash rate at 3.6% for a second straight month, most economists predict and money market pricing shows. Deutsche Bank AG and Westpac Banking Corp. were among those that switched to hold from hike calls after first-quarter core inflation came in under forecasts. Commonwealth Bank of Australia stuck to its forecast for a quarter percentage-point move.