Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
RBA Raises Interest Rates by 25 Basis Points as Inflation Pressures Persist 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
The Reserve Bank of Australia (RBA) is expected to keep its benchmark interest rate unchanged at 3.60% following the conclusion of its two-day policy meeting on November 4. Markets anticipate a hawkish tone from the central bank, as inflation remains persistently high and the labor market shows resilience despite recent economic headwinds.
The decision comes after a series of rate cuts totaling 75 basis points in 2025, aimed at supporting the economy amid cooling inflation and a softening job market. However, stronger-than-expected third-quarter inflation data have shifted expectations, reducing the likelihood of further monetary easing this year. RBA Governor Michele Bullock described the latest inflation figures as “a material miss,” signaling a cautious stance toward future policy moves.
Analysts from ANZ expect the RBA board to unanimously hold rates steady, citing the sharp rise in consumer prices. They noted that the central bank may only consider easing again if economic activity weakens significantly, likely requiring a higher unemployment rate and weaker GDP data. ANZ forecasts one final 25 basis point rate cut in early 2026, with no changes expected for the remainder of 2025.
Westpac analysts echoed this outlook, emphasizing that inflation remains “too hot to handle.” They believe the RBA will maintain its policy stance until early 2026, awaiting confirmation that inflation pressures have eased.
Australian equities, represented by the ASX 200, have struggled ahead of the meeting, logging four consecutive sessions of losses. A hawkish hold could further pressure stocks, although resilient corporate earnings may cushion the downside.
Meanwhile, the Australian dollar (AUD/USD) is likely to strengthen if the RBA delivers a hawkish message, particularly if Governor Bullock rules out additional rate cuts, reinforcing market confidence in the Aussie’s near-term outlook.
