Aussie Dollar Low Amid RBA Rate Decision Speculation
Solid ECN - The Australian dollar stayed around $0.65, close to its lowest point in twelve weeks, as market players considered the recent remarks from the central bank. Michele Bullock, the Governor of the Reserve Bank of Australia, mentioned that bringing inflation down to 2.5% isn't necessary to reduce the cash rate.
Yet, she also noted that the RBA hasn't dismissed the chance of raising interest rates further, nor has it confirmed such a move. Analysts at CBA have predicted a total of 75 basis points in rate cuts for this year, with more expected in 2025. This comes as the RBA kept interest rates unchanged during its February meeting but indicated that rates might still go up if inflation stays high. The central bank pointed out that inflation dropped more than anticipated in the last quarter of the year, yet it's still unclear when inflation will fall back into the desired range of 2-3%.