Last week, we saw monetary policy decisions in the US, UK and Japan. Only the Bank of England raised interest rates but it was clear that the US Federal Reserve is by far the most confident of the major central banks and is expected to raise rates at their next meeting. The RBA meets this week but is almost certain to leave rates unchanged once again.
Financial markets continued to push out the timing of the first RBA rate hike with the lower than expected June quarter CPI data supporting this view with market pricing suggesting that the RBA will likely sit pat until the end of next year, when the first tightening since the end of 2010 is expected. A full 25 basis point RBA rate hike is not fully priced in till April 2020.
Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank Limited accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank - A Division of Bendigo and Adelaid Bank ABN 11 068 049 178 AFSL/Australian Credit Licence 237879.