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(Bloomberg) — Australia is set to keep its key interest rate unchanged for the first time this year, with money markets paring bets on further tightening amid signs the economy is beginning to soften.
Economists anticipate the Reserve Bank will hold its cash rate at 4.35%, snapping a run of hikes at its first three meetings of 2026. Investors will focus on whether Governor Michele Bullock signals some comfort at the current rate or keeps the door open to further moves to counter stubborn price pressures.
The RBA chief holds her press conference at 3:30 p.m. in Sydney, an hour after Tuesday’s decision is released.
Australian households and the broader economy have been squeezed by resurgent inflation, the RBA’s rapid-fire rate rises and an Iran-war driven spike in fuel costs. That’s beginning to show up in data in the form of weaker growth, higher unemployment and a slight easing of inflation pressures.
