Central Banks
RBA Keeps Rate at 12-Year High, Signals Higher Bar for Rate Hikes
- Rate path will depend on data, evolving assessment of risks
- Australian dollar, yields rise as traders trim rate-cut bets
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Australia’s central bank left interest rates at a 12-year high and signaled further tightening remains possible, joining global peers in pushing back against expectations for near-term easing and sending the currency and bond yields higher.
The Reserve Bank maintained its cash rate at 4.35% — as predicted by economists — on Tuesday, and said in a post-meeting statement that “a further increase in interest rates cannot be ruled out.”