Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
RBA Minutes Signal Growing Caution on Future Rate Cuts Amid Persistent Inflation 
Tech Stocks Lift S&P 500 as Fed Rate-Cut Expectations Rise 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Trump and Lula Discuss Trade, Sanctions, and Security in “Productive” Phone Call 
FOMC Minutes Expected to Reveal Deep Policy Divide as Markets Eye December Rate Cut 
U.S. Soybean Shipments to China Gain Momentum as Trade Tensions Ease 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
South Korea Inflation Edges Up in November as Food and Service Costs Climb 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
Australia’s central bank is taking a deeper look at several structural shifts in the economy as it reassesses future monetary policy moves. According to Sarah Hunter, assistant governor at the Reserve Bank of Australia (RBA), policymakers are closely examining changes in business pricing strategies, the nation’s supply capacity, and the effectiveness of monetary policy transmission in the current environment.
Hunter noted during an event in Sydney that the RBA remains “constantly curious” about how the economy is evolving beneath the surface. This renewed scrutiny follows an unexpected surge in inflation last quarter, which invalidated previous forecasts and tempered expectations for further rate cuts after three reductions earlier this year. With inflation remaining stubbornly high, the bank is questioning whether the current cash rate of 3.6% is sufficiently restrictive to guide inflation back into its 2–3% target range.
One major focus for the RBA is whether companies have shifted their price-setting behavior after the COVID-19 pandemic. Businesses may be reacting differently to cost pressures and consumer demand compared to pre-pandemic norms, potentially complicating inflation forecasting.
The second area under examination is the economy’s supply capacity. This includes evaluating how close Australia is to full employment and determining whether labor market conditions are contributing to inflationary pressures. Understanding the true limits of supply is crucial for policymakers trying to balance economic growth with price stability.
The final issue concerns the transmission channels of monetary policy. Hunter highlighted that the housing market has responded more strongly than expected to recent rate cuts, raising questions about how effectively higher or lower interest rates influence broader economic activity compared to previous cycles.
As the RBA navigates these uncertainties, its analysis of shifting behaviors and economic dynamics will play a key role in shaping upcoming decisions on interest rates and future policy settings.
