RBA to keep rates unchanged with a hawkish tone
The Reserve Bank of Australia is expected to keep interest rates unchanged. High petroleum prices may lead to a slightly hawkish tone.
The market has priced in a 99% probability that the rate will remain unchanged. The central bank’s views on the labor market and inflation will be closely watched.
The RBA’s tone will be important as the market has already priced out a lot of hawkishness regarding the RBA in recent weeks. By year-end, the market sees only a 60% chance of another rate hike now.