Reserve Bank of Australia meet Monday & Tuesday, likely cash rate hold @ 4.35%, 12 yr high

The Reserve Bank of Australia is meeting today and tomorrow, Monday, 17 June 2024 and Tuesday, 18 June 2024.

The Bank’s decision is due at 2.30pm Sydney time on Tuesday

• this is 0430 GMT and 0030 US Eastern time

Reserve Bank of Australia Governor Bullock will hold her press conference an hour later, at 3.30pm local (0530 GMT, 0130 US Eastern time).

The latest data relevant to the Bank’s two mandates show inflation stubbornly above target (the target band is 2 to 3%):

• Australian April CPI 3.6% y/y (expected 3.4%)

While the jobs market remains solid, with the unemployment rate not too far above its recent near five-decade low:

• Australian May unemployment rate 4.0% (vs. 4.0% expected)

Sticky high inflation and a resilient jobs market means the Bank will keep its cash rate on hold at 4.35%. Expectations are for a cut perhaps late this year or early next:

• Australia’s ANZ forecast the first RBA rate cut in February 2025 (from November 2024)

Reserve Bank of Australia Governor Bullock

This article was written by Eamonn Sheridan at www.forexlive.com.