RBA Expected to Maintain Cash Rate in 2022, Potential Rate Cut in February: Reuters Poll – U.S News & World Report Money

The Reserve Bank of Australia (RBA) is expected to hold its cash rate steady throughout the rest of the year, according to a recent Reuters poll. However, the first rate cut of 2022 is predicted to come as early as February.

The RBA has kept interest rates at a record low of 0.1% since November 2020 in an effort to support the economy during the ongoing COVID-19 pandemic. Despite signs of economic recovery, inflation remains below the central bank’s target range of 2-3%.

Economists surveyed by Reuters believe that the RBA will hold off on any rate hikes until at least 2023, with the first cut likely to come in February. This decision is expected to be driven by concerns over inflation and the pace of economic growth.

The RBA’s monetary policy decisions have a significant impact on borrowing costs for consumers and businesses, as well as the strength of the Australian dollar. Any changes to the cash rate can have far-reaching effects on the economy, making them closely watched by investors and policymakers alike.

As the RBA prepares to make its next move, all eyes will be on the central bank’s decision-making process and the potential implications for the Australian economy. Stay tuned for updates on this developing story as it unfolds.