News & analysis
News & analysis

RBA surprises the market hiking 25bp against expectations

2 May 2023 By Lachlan Meakin

Share

The Reserve Bank of Australia rate meeting today was supposed to be a done deal of another hold in rates, with futures markets pricing in an over 90% chance of that being the outcome.

The RBA however, showing their determination to get an inflation rate still well outside their target band instead delivered a 25bp hike after last months pause, surprising the market and seeing a dramatic reaction in the Aussie dollar (pump) and equity markets. (dump)

AUDUSD and ASX200 reaction:

Adding to this was what was see as a hawkish statement accompanying the decision, helping to cement the original moves which look now to have some legs, likely seeing the AUDUSD break the 0.67 level this session.

*RBA RAISES CASH RATE TARGET 25 BASIS POINTS TO 3.85%

*RBA: SOME FURTHER TIGHTENING OF MONETARY POLICY MAY BE REQUIRED

*RBA SAYS RATE RISE TO HELP ANCHOR INFLATION EXPECTATIONS

 

Ready to start trading?

The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.

#Interest #Rates #Fed #InterestRates #Banks #Banking #FinTech