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Australia RBA Interest Rate Decision meets forecasts (4.85%)
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In Short: In China, stocks declined as a sharp selloff in technology and AI-related shares outweighed the US Federal Reserve’s decision to keep interest rates unchanged.
The Reserve Bank of Australia (RBA) kept its official cash rate unchanged at 4.85% on Tuesday, as widely expected by financial markets. The decision came as the Australian dollar (AUD) against the US dollar (USD) held steady around 0.7000, near a one-week low.
Financial analysts noted that the AUD/USD pair had been under pressure due to expectations of a potential rate hike. However, the RBA's decision to maintain the status quo provided some relief to the currency.
Meanwhile, the Japanese yen saw some support from intervention risks, though gains were capped by uncertainty over the timing of the next Bank of Japan (BOJ) rate hike.
The Los Angeles Dodgers officially introduced two-time MLB MVP Award winner Shohei Ohtani, who signed a record $700 million, 10-year contract. Ohtani’s unusual contract calls for annual salaries of $70 million, with $68 million deferred without interest, payable in equal installments each July 1 from 2034-43.
The Bank of Japan raised its key interest rate to a 31-year high of 1.25 percent on Friday, signaling that more hikes may come, as its governor said monetary policy has entered a different phase to keep accelerating inflation in check.
The BOJ's latest decision marked the shortest interval between rate hikes since the current tightening cycle began in March 2024.
In cryptocurrency markets, the US Federal Reserve’s decision was eagerly awaited, with CME FedWatch data indicating that the probability of interest rates remaining above their current level after the December 9 meeting was priced at a total of 87.6 percent.
The Federal Reserve decided Wednesday to leave interest rates unchanged, holding the Federal funds rate between 3.75% and 4.00% as inflation and the job market sent conflicting signals.
There are questions after Lindsay Clancy’s mistrial, including whether there will be a retrial and where she will be as she waits for that decision.
The emotionally charged case has sharply divided many Americans and generated intense interest for over a month as it’s drawn attention to issues around maternal mental health after childbirth.
In sports, today's lineup decisions for players like TreVeyon Henderson, Jadarian Price, Justin Herbert, and more were analyzed.
In a separate development, former US President Donald Trump cited US national interests despite growing concerns that easing economic pressure on Moscow could help finance its war against Ukraine.
What this adds
The AUD/USD pair's consolidation near a one-week low reflects broader market sentiment and expectations around the RBA's decision.
What's confirmed
- The Reserve Bank of Australia (RBA) kept its official cash rate unchanged at 4.85% on Tuesday, as widely expected by financial markets. The decision came as the Australian dollar (AUD) against the US dollar (USD) held steady around 0.7000, near a one-week low.
- Financial analysts noted that the AUD/USD pair had been under pressure due to expectations of a potential rate hike. However, the RBA's decision to maintain the status quo provided some relief to the currency.
- Meanwhile, the Japanese yen saw some support from intervention risks, though gains were capped by uncertainty over the timing of the next Bank of Japan (BOJ) rate hike.
- The Los Angeles Dodgers officially introduced two-time MLB MVP Award winner Shohei Ohtani, who signed a record $700 million, 10-year contract. Ohtani’s unusual contract calls for annual salaries of $70 million, with $68 million deferred without interest, payable in equal installments each July 1 from 2034-43.
- The Bank of Japan raised its key interest rate to a 31-year high of 1.25 percent on Friday, signaling that more hikes may come, as its governor said monetary policy has entered a different phase to keep accelerating inflation in check.
- The BOJ's latest decision marked the shortest interval between rate hikes since the current tightening cycle began in March 2024.
- In cryptocurrency markets, the US Federal Reserve’s decision was eagerly awaited, with CME FedWatch data indicating that the probability of interest rates remaining above their current level after the December 9 meeting was priced at a total of 87.6 percent.
- The Federal Reserve decided Wednesday to leave interest rates unchanged, holding the Federal funds rate between 3.75% and 4.00% as inflation and the job market sent conflicting signals.
- There are questions after Lindsay Clancy’s mistrial, including whether there will be a retrial and where she will be as she waits for that decision.
- The emotionally charged case has sharply divided many Americans and generated intense interest for over a month as it’s drawn attention to issues around maternal mental health after childbirth.
- In sports, today's lineup decisions for players like TreVeyon Henderson, Jadarian Price, Justin Herbert, and more were analyzed.
- In a separate development, former US President Donald Trump cited US national interests despite growing concerns that easing economic pressure on Moscow could help finance its war against Ukraine.
What's still developing
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- However, Fed rate-hike bets and a modest bounce in US bond yields cap gains for the non-yielding yellow metal.
- The two-time AL MVP agreed to a record $700 million, 10-year contract last weekend, a deal that the team announced Monday and provides that 97% of the money be deferred without interest and not fully paid until 2043.
- Chinese stocks declined as a sharp selloff in technology and AI-related shares outweighed the US Federal Reserve’s decision to keep interest rates unchanged.
- Asked whether the BOJ could raise its policy rate by more than 0.25 percentage points in a single move, Ueda told the press conference, "There are various possibilities, depending on developments in prices." Ueda also underlined the need to avoid the negative impact of rapid interest rate hikes on the economy.
- Normally, higher interest rates can weigh on equities by raising borrowing costs and discount rates.
- Buying accelerated after the BOJ decision, with the index rising more than 1,200 points by early afternoon.
- Warsh argued that transparency about future policy decisions is not automatically beneficial.
- But his message was unmistakably more hawkish than the communication that followed the Fed’s July decision, when policymakers left the benchmark federal funds rate unchanged.
- Wednesday's decision came less than a week before the Nov. 3 midterm elections, with consumer prices up 3.7% in September from a year earlier and core inflation at 2.6%, according to the Bureau of Labor Statistics.
- TOKYO - Tokyo stocks rose sharply on September 18, with the Nikkei 225 climbing to around 65,350 in afternoon trading after the Bank of Japan raised interest rates to 1.25%, as the yen weakened and investors bought artificial intelligence and semiconductor-related shares.