On April 3, institutions analyzed that for the first time in nearly a year, the market was divided on what measures the RBA would take at its upcoming policy meeting.
Calls are growing for the RBA to announce a pause in rate hikes after the official cash rate was raised by 350 basis points. The bank said in March it would reconsider pausing rate hikes.
Monthly inflation data showed CPI had already peaked in late 2022, giving the RBA room to pause rate hikes.
No matter what happens at Tuesday’s policy meeting, the RBA will not signal that the contraction cycle is over, although the tightening cycle now appears to be very ripe.