All Eyes on RBA as US Federal Reserve Signals Rates Cut

The US Federal Reserve has signalled cuts at its next meeting in September. The question now is: will the RBA follow suit next week, as many predict?

Pedestrians are reflected in the wall of the Reserve Bank of Australia in Sydney, Australia, on April 2, 2019. Saeed Khan/AFP via Getty Images

The U.S. Federal Reserve’s decision to leave rates on hold, while signalling a cut at its next meeting in September has buoyed hopes that the Reserve Bank of Australia (RBA) may follow suit at its meeting next week.

However, the Federal Reserve’s statement came amid a weakening U.S. dollar, whereas the Australian dollar has strengthened, reflecting the market’s approval of the RBA’s focus on controlling inflation.