Australian dollar slips after RBA raises rates 25 bps to 4.60%
The Reserve Bank of Australia unanimously raised rates by 25 basis points to 4.60%, a 15-year high, and left the door open to more hikes. Markets cut the implied chance of a November hike to 32% from 44%.
60%, as widely expected Board decision unanimous, ready to hike more if needed Markets imply 32% chance of November hike, 50-50 for December (Updates with RBA Governor Bullock and an economist's comments) By Wayne Cole SYDNEY, Sept 29 (Reuters) — The Australian dollar slipped on Tuesday after the country's central bank lifted interest rates to a 15-year peak as expected and left the door open to further hikes, yet still managed to underwhelm a very hawkish market. 60%, the fourth hike this year. In a media conference, RBA Governor Michele Bullock said the board believed financial conditions were now tight but were unsure if that would be enough to bring inflation down.
She also noted policy worked with a lag and the board wanted to see how the hikes already delivered would impact the economy. "It is possible that with financial conditions now tighter, officials will be content to watch for a while and only react if more bad news is received on the inflation front," said Sally Auld, chief economist at NAB. "Each decision to hike from here is a tougher call," she added. " Markets reacted by scaling back the chance of a November hike to 32%, from 44%, while a December move came in to 50% from 60%.
7400. 6922. 5%, in part due to a jump in fuel costs. 6%, well above the RBA's target range of 2% to 3%.
"That release will be an important gauge of the extent of domestic price pressures and will be a key input into the policy outlook," said Katherine Palmer, head of fixed income strategy at BlackRock Australia. 5650 support held for now. 5748. 0% when it meets on October 28, and move again by February.
20%. net)