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To Hike, or to Hold… or Both!
The first week of February brings the RBA, the BoE, and the ECB. One is expected to hike, the others look to stay on hold. But, the nuances will be carefully watched. Let’s start with the RBA. It has been far less aggressive with rate cuts since 2024. Compared to the RBNZ (-325 bps), the Riksbank (-225 bps), the ECB (-200 bps), the SNB (-175 bps), and the BoE (-150 bps), the RBA has reduced its cash rate only 75 bps, and all of it in 2025. The RBA has been more cautious due to the stickiness in inflation and tightness in the labour market. The hints started during the September meeting, when Governor Bullock said ... (full story)