

Aussie rallies on inflation surprise and rate hike speculations

The Australian dollar surged higher on Wednesday after data revealed that inflation accelerated much more than expected in May. This development impacted bonds as investors priced in a greater risk of another increase in interest rates. The monthly consumer price (CPI) report showed annual inflation rose to 4.0% in May. A key core measure also picked up to 4.4%, the highest reading in six months. How is the Reserve Bank of Australia (RBA) responding to this? Read to find out more.

response of rba

Disclaimer:

Investors should remain cautious as inflation data and central bank policies continue to drive market movements.

Publication date:

2024-07-02 08:51:52 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.