RBA Monetary Policy Statement: Further rate hikes may be needed

The RBA Monetary Policy Statement released by the Reserve Bank of Australia is out as follows:

PROJECTIONS ARE BASED ON A 3.75% RATE PEAK, WITH RATES DROPPING TO 3% BY MID-25.

FURTHER MONETARY POLICY TIGHTENING MAY BE REQUIRED.

ENERGY PRICES WILL CONTRIBUTE CONSIDERABLY TO INFLATION IN THE COMING YEAR.

WE ARE STEADFAST IN THE COMMITMENT TO RETURN INFLATION TO TARGET.

THE BOARD INTENDS TO KEEP AS MUCH EMPLOYMENT GAINS AS POSSIBLE.

More to come...

AUD/USD update

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About the RBA Monetary Policy Statement 

The RBA Monetary Policy Statement released by the Reserve bank of Australia reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. It is considered as a clear guide to the future RBA interest rate policy. Any changes in this report affect the AUD volatility. If the RBA statement shows a hawkish outlook, that is seen as positive (or bullish) for the AUD, while a dovish outlook is seen as negatvie (or bearish).