Market Expects Little Movement from RBA however …

Money markets predict central bank Governor Glenn Stevens will hold Australia’s cash rate steady for at least a year. History suggests he’ll spring a surprise.

Stevens, 55, has either raised or cut the benchmark rate 26 times since his tenure began in September 2006, the most among major developed-world peers, according to data compiled by Bloomberg. His activism puts him closer to central bankers in commodity-rich developing nations like Brazil than wealthier countries in Europe and North America.

Traders are pricing in no chance of an increase in the Reserve Bank of Australia’s cash rate in the next 12 months, according to a Credit Suisse Group AG index, as a waning mining-investment boom, forecast rise in unemployment and renewed currency strength prompted the authority to keep its easing bias intact after cutting the benchmark to a record-low 2.5 percent. Working against that bet are accelerating home price gains in one of the developed-world’s costliest property markets.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.