RBA rate rise shock is being underestimated, history shows

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May 5, 2024 - 1.28pm

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Governor Michele Bullock will need to defy the trends of history if the Reserve Bank of Australia holds the cash rate steady at 4.35 per cent on Tuesday, as most money market traders and economists expect.

In the past 25 years, the RBA has immediately raised interest rates when faced with a comparable high quarterly inflation rate to the current one, except during exceptional economic circumstances.

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