Reserve Bank of Australia may keep the interest rate unchanged at 4.10%

London: 4 September 2023 (TraderMade): Central bank interest rates are crucial as they impact financial markets, mainly Forex. As the Reserve Bank of Australia (RBA) is all set to announce its latest interest rates, the financial world has eyes on it.

What may the RBA decide tomorrow?

Financial experts anticipate that the RBA may pause interest rate hikes and maintain the interest rate unchanged at 4.10%. The Australian Dollar started trading on Monday with a slight upward trend at $0.65.

If the RBA decides to increase the interest rate by tomorrow, it may be a great surprise. The RBA has paused the interest rate during the last two meetings. So, this might be the third consecutive decision to keep the rates as they are.

So, as the RBA pauses rates for the third time, the market may consider it is done with tightening policies. However, there are chances that the RBA may increase rates in the next quarter.

Most importantly, inflation in Australia is decreasing. It reached its lowest level since February 2022. The Consumer Price Index (CPI) fell to 4.9% y/y from 5.4% y/y. The CPI indicates that the RBA has taken balanced decisions to counter inflation.

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