Analysts at Bank of America lump the RBA and Bank of Canada in together.
Say that these two were the first major central banks to
- downshift the speed of their rate hikes
However, since their respective decisions:
- strong data came out suggesting they may have pivoted too early
BoA conclude:
- the exit path for central banks does not always run in a straight line
In Australia the most recent official inflation data surely did show a jump after the Reserve Bank of Australia ratcheted down its rate hikes from +50 to +25. They are a stubborn bunch at the RBA, though, and are likely to stick to their +25 sized hikes in the coming month (December 6 is the final RBA meeting for 2022, the first for 2023 is February 7) ahead regardless of data.
The hiking cycle so far:
