Market Outlook - RBA Not Expected to Change Rates Tomorrow

Forex - The Reserve Bank of Australia (RBA) is expected to maintain its benchmark interest rate during its policy meeting that started today and will conclude with the announcement tomorrow, due to ongoing inflation pressures. Market analysts believe that the RBA will skip changing the rate and keep it at 4.35%. Although headline inflation in Australia decreased from 3.8% in the second quarter to 2.8% in the third quarter, core inflation remained significantly above the RBA's target band of 2-3%. Moody's Analytics stated that inflation pressures will continue into the final quarter of the year, noting, "We expect the RBA to initiate a easing cycle with an interest rate cut in February." The RBA's interest rate decision will be announced tomorrow.