The RBA makes an important step towards restoring its credibility | Ausbiz

Oreana Financial Services’ Isaac Poole returns to discuss central bank aggressiveness, signals from bond markets, whether inflation will begin to moderate in the second half of the year along with the implications for our own RBA after the board’s small yet extremely important pivot towards recognising building wage pressures in its April monetary policy statement. “It finally came to the party and went someway towards re-establishing some credibility,” Isaac says. He thinks the bank will begin hiking rates in June but thinks its ambitious to believe the cash rate will sit above 2% by the end of the year as some forecasts currently expect. With the RBA slowly turning hawkish and commodity prices remaining elevated, he expects the environment will remain supportive for the Aussie dollar ahead. However, he cautions an extension of lockdowns in China to combat various Omicron outbreaks could lead to weaker emerging market currencies and, as a by-product, a softer Aussie dollar. (Source: Ausbiz) Click here to watch the interview.


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