From earlier:
- RBA raises its cash interest rate by 25bp, as expected
- AUD/USD up a few tics after the RBA rate hike and statement suggesting more to come
It was a predictable one but the crux of the statement was in the final passage as the RBA affirmed that:
"The Board expects to increase interest rates further over the period ahead, but it is not on a pre-set course."
Despite having hinted that rates have reached neutral a couple of months back, they are still following the general playbook and suggests that more rate hikes are to follow. That gave the aussie a slight nudge but on the balance of things, they are still one of the "softer" central bank these days. That said, who isn't when you compare it to the Fed.
The central bank bonanza will continue tomorrow with the Bank of Canada (expected to raise interest rates by 50 bps) before we get to the Fed, ECB, BOE and SNB next week. All that before the BOJ rounds it off on 20 December.
