The Reserve Bank of Australia (RBA) is likely to raise interest rates just before Christmas, as inflation remains above target and expectations risk becoming entrenched. Deputy Governor Andrew Hauser said a growing number of businesses think 3% to 3.5% may be the new normal, while the unemployment rate has risen to 4.7%, its highest in almost five years. September unemployment was higher than the average for that month since records began, exceeded only by 2020, and RBA calculations suggest unemployment must rise further to bring inflation under control. The article notes that US midterm elections fall on the same day and that the war in Iran could push oil prices higher, complicating the RBA's trade-off. The board's next meeting in early December offers a chance to reverse the decision.
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AUD/USD
• NeutralRelevance: medium
| Market | Currencies |
|---|---|
| Close on 11/02/2026 | 0.69982 |
| Change that session | -0.48% |
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