20 December 2022 | Other

Bank of Australia could leave interest rates unchanged at its latest meeting

The Reserve Bank of Australia (RBA) was considering pausing its policy tightening cycle this month. But according to the meeting protocol, recent economic data suggests keeping the previous position for a while.

Two weeks ago, the RBA was considering three scenarios - 0.25%, 0.5%, or no rate hike. As a result of the negotiations, the rate increase was 0.25% to the 3.1% level.

The discussion and arguments for a pause occurred for the first time in the current RBA tightening cycle. Most economists expect an interest rate hike in 2023. They believe that there will be two more increases by 0.25%, after which the value will reach 3.6%.

Gareth Aird from Commonwealth Bank of Australia said that the occurrence of discussions about the pause signals that the RBA is actually considering the possibility of doing it.

Aird thinks that there will be a lot of problems next year. In his opinion, the RBA admits this and actually wants to stop raising rates.

The RBA has decided to continue tightening and noted that predictions indicate inflation may not return to the 2-3% target until several years from now, even with further rate rises.

Company MarketCheese
Period: 08.07.2025 Expectation: 1500 pips
EURUSD rally faces potential correction toward 1.165
Yesterday at 06:46 AM 47
Period: 09.07.2025 Expectation: 1400 pips
USDCAD declines amid US dollar weakness and improving Canadian trade prospects
Yesterday at 06:07 AM 34
Period: 08.07.2025 Expectation: 3000 pips
Buying Bitcoin during consolidation before July growth wave with 110,000 target
01 July 2025 60
Period: 07.07.2025 Expectation: 2000 pips
Renewed tensions between Musk and Trump weigh on Tesla shares
01 July 2025 50
Period: 07.07.2025 Expectation: 1900 pips
SPX may retreat to 5,980 following all-time high
30 June 2025 56
Gold sell
Period: 04.07.2025 Expectation: 5000 pips
Gold's six-month uptrend is under threat as prices test 3250 level
30 June 2025 174
Go to forecasts