Reply to thread

Message: [QUOTE="MiloPlexyTrade, post: 239211, member: 122944"] [RIGHT][B]10th December 2024 Tuesday [/B][/RIGHT] [JUSTIFY][B]Australia’s Reserve Bank is set to announce its Cash Rate decision, closely watched for clues on monetary policy direction. Influenced by recent inflation and employment data, the decision could impact borrowing costs, inflation control, and consumer spending amid economic challenges.[/B][/JUSTIFY] [B] [/B] [CENTER][B][U]AUD - Cash Rate[/U][/B][/CENTER] [JUSTIFY]The Cash Rate refers to the interest rate charged on overnight loans between financial institutions. A rate higher than the forecast is typically positive for the currency. Traders closely monitor this rate, as short-term interest rates are a key driver of currency valuation, with other indicators primarily analyzed to anticipate rate changes. On November 5, 2024, the Reserve Bank of Australia (RBA) Board decided to maintain the cash rate target at 4.35% and the interest rate on Exchange Settlement balances at 4.25%. The Board acknowledged that underlying inflation remained elevated despite a significant decrease since 2022, largely influenced by temporary cost of living relief and declines in fuel and electricity prices. Headline inflation was recorded at 2.8% in the September quarter, down from 3.8% in the June quarter, though underlying inflation persisted at 3.5%. Forecasts suggested that inflation would not return sustainably to the target midpoint of 2.5% until 2026. Economic growth remained weak, constrained by reduced real disposable incomes and restrictive financial conditions, though consumer demand showed resilience due to spending by temporary residents. Labour market conditions stayed tight with a steady unemployment rate at 4.1% and high participation levels, while wage pressures eased slightly against weak productivity growth. The Board noted uncertainties in the global outlook, as some central banks eased monetary policy, and geopolitical risks remained high, especially regarding China’s economic policy impact. Prioritizing a sustainable return to target inflation within a reasonable timeframe, the Board expressed its commitment to maintaining restrictive policy until confident of inflation moving towards the target range.[/JUSTIFY] [B]TL;DR[/B] [TABLE] [TR] [TH][B]Date[/B][/TH] [TH][B]Event[/B][/TH] [/TR] [TR] [TD][B]November 5, 2024[/B][/TD] [TD]RBA maintained the cash rate target at [B]4.35%[/B] and the interest rate on Exchange Settlement balances at [B]4.25%[/B].[/TD] [/TR] [/TABLE] [TABLE] [TR] [TH][B]Key Highlights[/B][/TH] [TH][B]Details[/B][/TH] [/TR] [TR] [TD][B]Inflation[/B][/TD] [TD]- Headline inflation: [B]2.8%[/B] (Sep quarter), down from [B]3.8%[/B] (Jun quarter). - Underlying inflation: [B]3.5%[/B], expected to reach 2.5% midpoint by [B]2026[/B]. - Driven by cost of living relief, fuel, and electricity price declines.[/TD] [/TR] [TR] [TD][B]Economic Growth[/B][/TD] [TD]- Growth remains weak, constrained by reduced disposable incomes and tight financial conditions. - Consumer demand supported by spending by temporary residents.[/TD] [/TR] [TR] [TD][B]Labour Market[/B][/TD] [TD]- Unemployment rate steady at [B]4.1%[/B]. - High participation and easing wage pressures despite weak productivity growth.[/TD] [/TR] [TR] [TD][B]Global Outlook[/B][/TD] [TD]- Geopolitical risks remain high. - China’s economic policies and easing by some central banks pose uncertainties.[/TD] [/TR] [TR] [TD][B]Policy Stance[/B][/TD] [TD]- RBA committed to restrictive policy until confident of inflation nearing target range.[/TD] [/TR] [/TABLE] [JUSTIFY]Australia’s [B]Cash Rate [/B]forecast stands at [B]4.35%, [/B]unchanged from the previous outcome, signaling steady monetary policy expectations.[/JUSTIFY] Australia is set to announce its [B]Cash Rate [/B]decision on [B]Tuesday [/B]at [B]3:30 AM GMT.[/B] [ATTACH type="full"]30608[/ATTACH] [/QUOTE]

Verification

Top Bottom