Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
CATEGORIES
News
- Continue to look at adjustments in the short term, early morning resolution is t
- Euro bulls are unstoppable! Dollar sells off as bets on Fed rate cut surge
- With consumer confidence collapsing and doves assisting, the probability of an i
- Light up the road to global responsibility with the light of public welfare
- The U.S. lays off more than one million people, the end of the dollar index
market analysis
The Reserve Bank of Australia’s final decision in 2025 suddenly sounded the alarm, raising interest rate alarms early next year.
Wonderful introduction:
Love sometimes does not require the promise of eternal love, but it definitely needs meticulous care and greetings; love sometimes does not need the tragedy of Butterfly Lovers, but it definitely needs the tacit understanding and congeniality of the heart; love sometimes does not need the following of male and female, but it definitely needs the support and understanding of each other.
Hello everyone, today XM Forex will bring you "[XM Foreign Exchange Market xm-forex.commentary]: The Reserve Bank of Australia's 2025 final decision has suddenly sounded, and the alarm for raising interest rates early next year has sounded." Hope this helps you! The original content is as follows:
The Reserve Bank of Australia (RBA) has decided to keep interest rates unchanged at 3.6%. The president of the bank said that the board of directors is ready to raise interest rates if necessary next year. Recent data showed Australia's overall inflation rate rose to 3.8% in October, up from 3.6% in September.
The Reserve Bank of Australia said in a statement on Tuesday (December 9) that it was willing to remain patient before adjusting interest rates again. The decision to keep interest rates unchanged was unanimous.
RBA Chairman Michelle Bullock said that the December meeting did not discuss the possibility of a rate cut, but there was "quite a lot" of discussion about the prospects for future rate hikes and when a rate hike might be necessary.
If inflation persists and there appears to be no sign of a return to target, then I think that does raise questions about the degree of tightening in the current financial environment and the board may have to consider whether it would be appropriate to leave rates unchanged or whether it would be appropriate to raise rates at some point," Ms. Bullock said.
"But I will not set a specific timetable for this. This will be an issue that needs to be decided carefully on a meeting-by-meeting basis."
The RBA said in a statement after the meeting that recent data indicate that "inflation risks have tended to rise, but more time is needed to assess the persistence of inflationary pressures."
"The Board of Directors has judged that part of the recent increase in core inflation is due to temporary factors. Since the monthly CPI data is a newly established data series, there is uncertainty about the strength of the signal it conveys."
This decision to keep interest rates unchanged is the last interest rate decision of the Reserve Bank of Australia in 2025. The next meeting will be tomorrowHeld on February 2-3, this means that interest rates will remain unchanged at 3.6% for at least the next two months.
What do economists think?
Callum Pickering, Asia-Pacific economist at global recruitment website Indeed, expressed hope that the Reserve Bank of Australia's cautious approach will not allow inflation to "get out of control again."
He said: "The weak economy, weak job market and high inflation will give the Reserve Bank of Australia a lot of issues to think about during the Christmas holiday."
"Inflation is obviously too high and has significantly exceeded the bank's November forecast, but the economy is still weak and the job market continues to slow down."
"Geopolitical uncertainty also continues to brew in the background. Although it has been basically ignored by financial markets, it may still have an impact on economic conditions." Nelida Conisbee, chief economist at Ray White Group, said that high housing costs are pushing up overall inflation, which poses problems for the RBA's policy formulation.
The challenge for policymakers is that the most stubborn sources of inflation today are those that are least sensitive to interest rate increases. Rents remain high due to a shortage of rental housing, while construction costs are only slowly falling as labor and material constraints continue to impact the delivery of new homes. Utilities and insurance premiums, the main drivers of household cost pressures, are driven primarily by structural and regulatory factors rather than consumer demand. This creates a This creates a policy paradox. Maintaining high interest rates will suppress household spending and business investment, helping to slow demand. But it is these restrictive conditions that slow down residential construction and hinder the supply of new rental housing, but intensify the housing inflation that the RBA is trying to control."
Australian Federal Finance Minister Jim Chalmers said that part of the reason for the recent rise in inflation is temporary factors, and "we have observed similar phenomena in many regions around the world."
He said: "Although millions of Australians had hoped for more interest rate relief, this decision has long been widely expected by economists and markets."
Block said at the post-meeting press conference: It is wrong to believe that the board has no intention to raise interest rates
At the post-meeting press conference, RBA Chairman Michelle Bullock said that board members are quite uneasy about the recent rise in inflation in Australia.
It would be a misjudgment to think that the board had "no intention of raising interest rates," but they chose to keep rates steady over the summer, she said.
Block said: "The board will take steps it deems necessary to return inflation to its 2.5% goal."
"This is indeed troubling. In our discussion today, members were uncomfortable with the current state of inflation."
p>
"If you look back six or seven months ago, things were moving in the right direction. (Rate cuts) seemed appropriate at the time."
"But the data and environment are changing, and many of the world economic risks that people are really worried about have eased."
"So when things change, you have to adjust your view. I think it's appropriate for the board to remain flexible and agile."
Cherrell Murphy, chief economist at Ernst & Young, said that the market had expected the tone of the RBA meeting to change from the November meeting - when its policy stance was still dovish, and this expectation was confirmed today.
She pointed out: "The economy currently appears to be operating close to or even above its capacity, so the RBA cannot provide further stimulus without triggering sub-ideal inflation."
"The worst-case scenario is that the level of domestic demand and interest rates currently operating in the economy may already be fueling inflation."
"Given the changing dynamics, the RBA is right to remain cautious, but if recent changes in inflation persist and inflation forecasts are revised upward, 2026 will be very unlikely. Tighter monetary policy may be on the horizon."
Australian dollar continues to rise due to RBA's hawkish stance
RBA Chairman Michelle Bullock's hawkish remarks (suggesting that further interest rate cuts may not be needed and saying that the board of directors may not need to do so) The situation that may require tightening of policy has been discussed), pushing the AUD/USD back to close to the high since September 17 (0.6648) on Tuesday, with an increase of about 0.20%, but cautious market sentiment may pose resistance to the risk-sensitive Australian dollar.
The above content is all about "[XM Foreign Exchange Market xm-forex.commentary]: The Reserve Bank of Australia's 2025 final decision has suddenly sounded, and the alarm for an interest rate hike early next year has sounded". It was carefully xm-forex.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
Spring, summer, autumn and winter, every season is a beautiful scenery, and they all stay in my heart forever. Slip away~~~
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here