Australia’s 10-year government bond dipped to around 4.94%, but remained near its highest level since July 2011, after the Reserve Bank of Australia delivered back-to-back interest rate hikes. The board raised the cash rate to 4.1% from 3.85%, marking its first consecutive increase since mid-2023 and partially reversing two of the three rate cuts implemented last year. The decision comes as the central bank intensifies its fight against persistent inflation, with higher energy costs linked to the escalating Iran conflict adding further price pressures. This follows a recent resurgence in inflation, led by services and housing costs, amid a still-tight labor market. Investors are now closely watching Governor Michele Bullock’s post-meeting press conference for signals on the central bank’s next policy moves. Attention is also on February labor data, due this week, for additional guidance on the RBA’s policy outlook.
