Bond traders are abandoning their bets that the Reserve Bank of Australia would cut interest rates again this cycle after governor Michele Bullock told a packed press conference that higher-than-expected inflation could mean a move in either direction was on the table.
The bond market had already given up hope of some rate relief within the next six months after inflation accelerated to 3 per cent in the September quarter – the top of the central bank’s target range – suggesting that interest rates would stay high for longer.
Source: https://www.afr.com/markets/debt-markets/rba-governor-dampens-market-s-rate-cut-hopes-20251103-p5n7dn