Reserve Bank of Australia monetary policy decision for July 2022. Governor Lowe is making it very clear that there are more hikes yet to come. Which we knew.

Headlines via Reuters:

Full text is here:

A hawkish statement was expected, and its not dovish. But, being a bit nuanced its not as hawkish as perhaps was expected. Lowe is playing it straight with his data-dependent comment and also on how forecasts evolve. For now he is indicating it is still the RBA's assessment that inflation will fall back into the target band in 2023.

IMO its too early to forecast what the RBA will at its next meeting, August 2. But, I will anyway. Another +50bps would seem to be a no brainer.


AUD/USD has dropped a few tics. Sell the fact after the rise overnight.


Reserve Bank of Australia Governor Lowe:

RBA Lowe