The Reserve Bank of Australia kept rates unchanged unanimously but signaled potential cuts ahead amid rising unemployment and lower short-term inflation forecasts.
The Reserve Bank of Australia left its benchmark interest rate unchanged in a unanimous decision, defying speculation of a dissenting vote for a hike. Updated forecasts showed higher unemployment and lower short-term inflation, though medium-term inflation risks remain elevated.
Markets had anticipated a potential split vote, but the RBA’s statement lacked a hawkish tone. While further rate hikes are still possible, the central bank’s projections suggest a dovish tilt, with the next move likely a cut. The Australian Dollar showed minimal reaction initially.
Analysts expect the AUD to remain under pressure as the RBA’s policy trajectory shifts toward easing in the coming months.