RBA governor Bullock: A rate cut is not on the agenda in the near-term

• We did consider a rate hike, ready to raise rates if needed
• We are vigilant to upside risks to inflation
• If inflation does not track the way we are forecasting, we will raise interest rates
• Hard to draw any red lines on price targets when forecasts are also inherently uncertain
• Need to have caution and calm on market volatility
• Market is pricing in rate cuts too soon, it does not align with the Board’s thinking
• Market expectations are getting a little bit ahead of themselves

I think that’s pretty much a nail in the coffin, at least for now, for those anticipating a rate cut in November and even December. AUD/USD is now up 0.4% to 0.6520 on the day as Bullock speaks.

This article was written by Justin Low at www.forexlive.com.