Millions of Aussies hold their breath ahead of major interest rate call trends now
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Household borrowers are set to be spared from further pain at the Reserve Bank's May meeting, yet all eyes will be on governor Michele Bullock's post-meeting press conference for clues on the path ahead for interest rates.
On Tuesday, the central bank is widely anticipated to keep the cash rate steady at a 12-year high of 4.35 per cent, continuing its holding pattern as it awaits further evidence that its efforts to tame inflation, currently at 3.6 per cent, are easing as intended.
Prior to the decision, markets ascribed just a 10 per cent chance that the RBA would deliver a shock rate hike, however traders have bolstered their bets of a resumption in tightening by Christmas, assigning a 44 per cent chance of a hike by December.
Economists are noticeably less pessimistic about the path of interest rates, with consensus forecasts showing the RBA's next move will be down from November at the earliest.
Household borrowers are set to be spared from further pain at the Reserve Bank's May meeting, yet all eyes will be on governor Michele Bullock's post-meeting press conference for clues on the path ahead for interest rates
Prior to the decision, markets ascribed just a 10 per cent chance that the RBA would deliver a shock rate hike, however traders have bolstered their bets of a resumption in tightening by Christmas, assigning a 44 per cent chance of a hike by December
AMP chief economist Shane Oliver said while he expected the RBA to ultimately keep the cash rate on hold, it would likely warn that a further rise in rates 'cannot be ruled out.'
'As a result, the RBA is likely to consider another rate hike,' Dr Oliver said.
'However, with retail sales
