RBA Set to Hold Key Rate to Counter Sticky Prices, Global Risks
- Policy makers to stand pat a 4.35%, marking year at that rate
- US election, China economy among host of global uncertainties
The Reserve Bank of Australia is focusing on underlying inflation as government rebates are suppressing the headline figure.
Photographer: Lisa Maree Williams/BloombergThis article is for subscribers only.
Australia’s central bank is poised to keep interest rates at a 13-year high, marking a year of unchanged policy as it grapples with a slow pace of disinflation and mounting global risks capped by a tight US election.
Economists see the Reserve Bank holding the cash rate at 4.35% on Tuesday — and leaving it there until at least February — with the board’s statement expected to remain cautiously hawkish. It’s likely to highlight the need for restrictive policy given an accompanying update of economic forecasts is set to show core consumer prices staying stubbornly elevated.