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The Australian Central Bank is expected to keep interest rates unchanged at 4.35% at today’s meeting. Considering that inflation is still well above the RBA’s threshold band, there is no reason to let off the gas pedal just yet.
In terms of language, don’t expect much change from what we saw previously in May here.
The RBA will likely want to continue to keep its options open, thus reiterating that they are “not ruling anything out” at this stage. It’s all about maintaining flexibility.
As we mentioned yesterday, traders are not looking forward to anything else until at least December. This is still a long way off, so today’s decision should have a minimal impact on the Australian currency.
