Reserve Bank of Australia Cash Rate
Event Date: Tuesday, March 7, 2023
Event Time: 03:30 CET
RBA to Raise Rates to 3.60%
Updated Monday, March 6, 2023
The Reserve Bank of Australia (RBA) is expected to cut rates to 0.75%. It has kept the rates unchanged for a couple of months, after two 25bp cuts this year already. The attention will shift to the RBA statement which will be released at the same time as the interest rate decision. The RBA was expected to cut interest rates in the May meeting but they left them unchanged, although they cut them in June by 25 bps. The RBA did so again in the July meeting, bringing them to 1.00%. The RBA has been raising interest rates since early 2022, and this time they are expected to raise rates by 25 bps again, taking them to 3.60% from 3.35%. Please follow us for live coverage of this event and the impact it might have on the currency.
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About Reserve Bank of Australia Cash Rate
The Reserve Bank of Australia (RBA) discloses its monetary policy decisions on a monthly basis, February through December. Any adjustments made to the cash rate, also known as the overnight money market interest rate, have the potential to impact the Australian dollar (AUD) significantly.The decision to either raise or lower the cash rate is crafted by the RBA’s Reserve Bank Board. After each meeting, an announcement is made to the public regarding any changes to the cash rate. The new lending rates to go into effect the next day.Short-term cash rates are extremely important to valuations of the AUD. Rising rates are viewed as bullish for the AUD, while falling rates are bearish.
The RBA kept its official cash rate on hold at 1.5% at its Cup Day meeting.
The AUD/USD shows no reaction and continues to trade near $0.7210. The immediate support can be found at $0.7180 while resistance prevails at $0.7220 & $0.7250.