After stonkingly strong December jobs data, which blew the Reserve Bank of Australia’s forecasts out of the water, markets are pricing in a 60 per cent chance the central bank will be forced into an embarrassing about-face.
Martin Place would be the first central bank in the world to lift rates following the post-pandemic easing of monetary policy, in what would be a formal acknowledgment that its rate reductions last year were an egregious policy mistake. (The Bank of Japan has been raising rates since 2024, but it never actually lowered them during the pandemic.)
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