What happened
Reserve Bank of Australia Deputy Governor Andrew Hauser confirmed the central bank will debate a cash rate increase at its upcoming meeting. Inflation remains elevated with risks tilted upward, exacerbated by rising oil prices. The RBA has raised interest rates three times this year, and financial markets now price in a 74% probability of a 25-basis-point hike.
Why it matters here
A fourth cash rate hike this year would increase borrowing costs for Australian households and corporations while pushing up government bond yields. Higher rate expectations typically weigh on consumer discretionary stocks, real estate, and financial sector valuations, while offering potential support to the Australian dollar.
What to watch
The Reserve Bank of Australia cash rate decision on September 29, alongside preliminary monthly inflation indicators and domestic fuel price trends leading into the meeting.
Source
brecorder.com