The RBA likely believes it won’t need to hike rates again – but the worst thing it could do is say that out loud
The Reserve Bank of Australia has held interest rates at 4.35% while maintaining a hawkish tone regarding persistent inflation. Analysts suggest the bank is using aggressive rhetoric as a psychological tool to manage market expectations despite signs of an economic slowdown.
The Reserve Bank of Australia board held rates at 4.35% on Tuesday, before the RBA’s governor Michele Bullock said ‘inflation remains too high’. The Reserve Bank of Australia board held rates at 4.35% on Tuesday, before the RBA’s governor Michele Bullock said ‘inflation remains too high’. Reserve Bank of Australia Analysis The RBA likely believes it won’t need to hike rates again – but the worst thing it could do is say that out loud Patrick Commins Economics editor When it comes to the Reserve Bank, there’s a whiff of a parent making a threat they have no intention of carrying out
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