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Stock impact report

RBA Drops Tightening Bias With Key Rate At a 12-Year High [BNN Bloomberg (Canada)]

StoneX Group Inc. (SNEX) 
Company Research Source: BNN Bloomberg
The Reserve Bank held its cash rate at 4.35% for a third straight meeting on Tuesday. Unlike previous months, the board made no reference to the possibility of further rate rises, signaling its tightening cycle may have ended. “While recent data indicate that inflation is easing, it remains high,” the board said in a statement accompanying the decision. “The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the board is not ruling anything in or out.” In response, the currency weakened to a two-week low of 65.32 US cents in Sydney and the policy-sensitive three-year government bond yield dropped to 3.67%. Australia's equity benchmark extended its gain to a session high. All eyes now move to Governor Michele Bullock's press conference at 3:30 p.m. in Sydney. “The market is interpreting RBA's forward statement as dovish, as the possibility of a rate hike seems to be lower now,” said Mingze Wu, a currency Show less Read more
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