Created
: 2025.10.15
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
RBA's Hunter: Inflation is likely to be stronger than forecast in Q3
World FX news
Breaking news
RBA's Hunter: Inflation is likely to be stronger than forecast in Q3
New
2025.10.15 08:43
2025.10.15 08:43
2025.10.15 08:43
Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter said early Wednesday that recent data has been a little stronger than expected, adding that inflation is likely to be stronger than forecast in the third quarter (Q3).
Key quotes
Recent data has been a little stronger than expected.
Inflation likely to be stronger than forecast in Q3.
Labour market and economic conditions might be tighter than assumed.
Employment growth has slowed by more than expected.
Uncertainty about the global outlook remains elevated.
Board will adjust policy as appropriate as new information comes to hand.
Slower productivity lowers economy's speed limit and pace at which wages can grow.
Slower productivity linked to lack of competition, business dynamism, and capital deepening.
Market reaction
At the time of writing, the AUD/USD pair is trading 0.31% lower on the day to trade at 0.6493.
RBA FAQs
The Reserve Bank of Australia (RBA) sets interest rates and manages monetary policy for Australia. Decisions are made by a board of governors at 11 meetings a year and ad hoc emergency meetings as required. The RBA's primary mandate is to maintain price stability, which means an inflation rate of 2-3%, but also "..to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people." Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will strengthen the Australian Dollar (AUD) and vice versa. Other RBA tools include quantitative easing and tightening.
While inflation had always traditionally been thought of as a negative factor for currencies since it lowers the value of money in general, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Moderately higher inflation now tends to lead central banks to put up their interest rates, which in turn has the effect of attracting more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in the case of Australia is the Aussie Dollar.
Macroeconomic data gauges the health of an economy and can have an impact on the value of its currency. Investors prefer to invest their capital in economies that are safe and growing rather than precarious and shrinking. Greater capital inflows increase the aggregate demand and value of the domestic currency. Classic indicators, such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can influence AUD. A strong economy may encourage the Reserve Bank of Australia to put up interest rates, also supporting AUD.
Quantitative Easing (QE) is a tool used in extreme situations when lowering interest rates is not enough to restore the flow of credit in the economy. QE is the process by which the Reserve Bank of Australia (RBA) prints Australian Dollars (AUD) for the purpose of buying assets - usually government or corporate bonds - from financial institutions, thereby providing them with much-needed liquidity. QE usually results in a weaker AUD.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the Reserve Bank of Australia (RBA) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the RBA stops buying more assets, and stops reinvesting the principal maturing on the bonds it already holds. It would be positive (or bullish) for the Australian Dollar.
Last updated
: 2025.10.15
Related articles
Finance Ministry: China will lift some tariffs on US agricultural goods from Nov. 10
30 minutes agoUSD/INR holds above 88.50 amid thin trading due to the Indian bank holiday
46 minutes agoUSD/CAD reaches seven-month highs above 1.4100 amid lower crude Oil prices
2025.11.05 11:55China's Premier Li: Unilateral, protectionist measures had severe impact on economic world order
2025.11.05 11:23PBOC sets USD/CNY reference rate at 7.0901 vs. 7.0885 previous
2025.11.05 11:09AUD/USD remains subdued near 0.6450 following China's RatingDog PMI data
2025.11.05 11:07
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Finance Ministry: China will lift some tariffs on US agricultural goods from Nov. 10
The Chinese Finance Ministry announced on Wednesday, "China will lift some tariffs on US agricultural goods from November 10.
New
2025.11.05 12:54USD/INR holds above 88.50 amid thin trading due to the Indian bank holiday
USD/INR moves little after registering mild gains in the previous session, trading around 88.70 during the Asian hours on Wednesday. The pair is likely to see limited movement amid thin trading as markets observe a bank holiday in India.
New
2025.11.05 12:38USD/CAD reaches seven-month highs above 1.4100 amid lower crude Oil prices
USD/CAD continues its winning streak for the fifth consecutive day, trading around 1.4110 during the Asian hours on Wednesday. The pair gains ground as the commodity-linked Canadian Dollar (CAD) faces challenges amid weakening Oil prices.
New
2025.11.05 11:55WTI extends the decline to near $60.00 on rising US inventories
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.00 during the Asian trading hours on Wednesday. The WTI extends its downside amid a significant increase in US crude inventories.
New
2025.11.05 11:41China's Premier Li: Unilateral, protectionist measures had severe impact on economic world order
China's Premier Li Qiang said in a statement on Wednesday, "some unilateral and protectionist measures have had severe impact on the economic world order."
New
2025.11.05 11:23Gold drifts higher amid growing concerns over US government shutdown
Gold price (XAU/USD) edges higher to near $3,950 during the Asian trading hours on Wednesday. Fears of economic risks stemming from the ongoing US government shutdown, along with geopolitical risks and uncertainties, could boost the safe-haven flows, supporting the Gold price.
New
2025.11.05 11:11PBOC sets USD/CNY reference rate at 7.0901 vs. 7.0885 previous
The People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Wednesday at 7.0901 compared to the previous day's fix of 7.0885 and 7.1336 Reuters estimate.
New
2025.11.05 11:09AUD/USD remains subdued near 0.6450 following China's RatingDog PMI data
AUD/USD continues its losing streak for the sixth consecutive session, trading around 0.6470 during the Asian hours on Wednesday. The pair remains subdued following the release of China's RatingDog Services Purchasing Managers' Index (PMI), which fell to 52.6 in October from 52.9 in September.
New
2025.11.05 11:07EUR/USD holds gains near 1.1500 due to cautious tone over ECB policy outlook
EUR/USD halts its five-day losing streak, trading around 1.1490 during the Asian hours on Wednesday. The currency cross inches higher as the Euro (EUR) receives support as traders expect the European Central Bank (ECB) to adopt a cautious stance in its upcoming policy meeting.
New
2025.11.05 10:49China's RatingDog Services PMI drops to 52.6 in October, as expected
China's Services Purchasing Managers' Index (PMI) declined to 52.6 in October from 52.9 in September, the latest data published by RatingDog showed on Wednesday.
New
2025.11.05 10:47Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
