RBA may hike rates due to external inflation risk
The RBA’s recent communication suggests a potential rate hike, driven by external inflation risks.
The bank’s decision to hold the cash rate at 4.35% for the second meeting does not rule out future hikes.
Markets have begun pricing in a full hike by next March, with the two-year yield rising a few basis points.
The AUD/JPY currency pair may retrace its late July fall, driven by low volatility and intervention debate.