Reserve Bank of Australia signals it is done hiking interest rates
The Reserve Bank of Australia's governor said the central bank believes it has finished raising interest rates, if its current economic forecasts hold true. Officials cautioned, however, that the risk of forecasts proving wrong is skewed toward another hike.
The governor of the Reserve Bank of Australia said the central bank believes it is done raising interest rates, provided its current economic forecasts prove accurate. The remarks offer a closely watched signal on the likely direction of monetary policy.
Officials stressed that while the forecasts are considered likely to hold, the risk of them being wrong remains skewed toward the need for another rate increase rather than a cut. The governor said the bank would act if incoming data diverged meaningfully from expectations.
The comments come as inflation and growth data continue to be closely monitored. Market participants will be watching upcoming RBA meetings to see how long the central bank maintains its current stance.
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