RBA Holds Rates Steady Amid Higher Unemployment Risks

The Reserve Bank of Australia (RBA) has kept interest rates unchanged in its latest decision. The unanimous vote was as expected by market participants, who had anticipated a possible dissenting vote in favor of raising the benchmark interest rate.

However, the statement accompanying the decision did not read particularly hawkish, with revised forecasts showing higher unemployment and lower short-term inflation. In contrast, medium-term inflation forecasts were revised upward, suggesting that further rate hikes are possible due to upside risks.

According to Commerzbank's Volkmar Baur, the next move by the RBA is likely to be an interest rate cut, which would put pressure on the Australian Dollar (AUD) in the coming months.