The Reserve Bank of Australia (RBA) remains cautious about further interest rate cuts, despite market expectations for additional easing. Last month, the central bank lowered rates for the first time in over four years, cutting them by 25 basis points to 4.1%. However, RBA officials emphasize that this does not signal a series of reductions.
Market analysts currently predict a 65% chance of another rate cut in May and a third by year-end. Yet, RBA Assistant Governor Sarah Hunter, speaking in Sydney on Tuesday, reiterated that the board remains more cautious than traders anticipate. She stressed that while the February cut was necessary to align with global monetary policy trends, the board does not foresee aggressive easing.
Governor Michele Bullock and Deputy Governor Andrew Hauser have both downplayed expectations of multiple rate cuts. Hunter pointed out that the central bank is closely monitoring external factors, particularly U.S. monetary policy, as it significantly impacts Australia's economy and inflation outlook. The Federal Reserve’s upcoming economic projections will offer key insights into how U.S. policies under the Trump administration could shape global economic conditions.
Domestically, Hunter highlighted a notable increase in household consumption during the December quarter, indicating a genuine recovery rather than a temporary seasonal boost. This suggests improving economic momentum, potentially reducing the urgency for further monetary easing.
As global and domestic uncertainties persist, the RBA remains committed to a measured approach, balancing economic growth with inflation control. Investors and policymakers alike will closely watch upcoming data and global central bank actions for clues on the RBA’s next move.


U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation
South Korea Industry Minister Heads to Washington Amid U.S. Tariff Hike Concerns
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets
Jerome Powell Attends Supreme Court Hearing on Trump Effort to Fire Fed Governor, Calling It Historic
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says
China Home Prices Rise in January as Government Signals Stronger Support for Property Market
India Budget 2026: Modi Government Eyes Reforms Amid Global Uncertainty and Fiscal Pressures
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 



