Reserve Bank of Australia (RBA) Assistant Governor (Economic) Sarah Hunter emphasized on Monday that the central bank remains cautious about the timing of interest rate cuts, highlighting the importance of US policy settings and their impact on Australian inflation.
In her remarks, Hunter noted that the RBA’s February statement reflected a more cautious stance than market expectations regarding future monetary easing. She pointed to a rebound in household consumption in the December quarter, suggesting it was not merely a temporary uptick.
Hunter also stressed that the RBA’s policy decisions are not mechanically linked to forecasts but instead take a forward-looking approach while acknowledging risks and uncertainties. She reiterated that while data remains crucial, the central bank must anticipate economic trends to fulfill its mandate.
Market Reaction
Following Hunter’s comments, the AUD/USD pair edged slightly lower, trading at 0.6382, down 0.01% on the day. Investors remain watchful of RBA policy signals and external economic factors shaping the Australian dollar’s trajectory.
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