Australia Delivers Rate Hike to 4.60% as RBA Warns of More to Come
The RBA raised its cash rate to 4.60%, a 15-year high, and signaled further hikes if inflation does not ease.
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The RBA raised its cash rate to 4.60%, a 15-year high, and signaled further hikes if inflation does not ease.
After the RBA raised the cash rate by 25 bps to 4.60%, AUD/USD fell below 0.7000 and risks a deeper decline if support levels fail.
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European stocks opened mostly higher but gains were modest as rising bond yields and oil prices kept pressure on risk sentiment.
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Spanish inflation accelerated to 4.9% in September, the highest since February 2023, while core price growth picked up to 3.1%.
Spain's preliminary September CPI rose 4.9% y/y, above the 4.6% expected, while HICP increased 5.0%.
RBA's Bullock downplays August CPI as a policy trigger, citing monetary policy lag and stressing the report's limited forward guidance.