- The Reserve Bank of Australia policy board will lift the cash rate to 4.6% at its Tuesday decision, ending a two-meeting pause, according to a Bloomberg survey of economists.
- Traders price the resumption of hikes, with debate mounting over whether a follow-up increase is needed.
- The decision lands against spiraling energy prices across the global economy, which reinforce the inflation case for tighter policy.
- At 4.6%, the cash rate reaches its highest level since November 2011, extending the RBA's restrictive stance into late 2026.
Quotes
“The Reserve Bank’s nine-member policy board will increase the cash rate by a quarter-percentage point to 4.6%, the highest level since November 2011”
“Traders are also pricing an end to the RBA’s two-meeting pause, against a backdrop of spiraling energy prices across the global economy.”