Will the Reserve Bank of Australia increase the target for the cash rate after the May Meeting?

“RBA just began easing in Feb 2025. A rate hike reversal within months would be extraordinary. Even with tariff uncertainty, RBA would hold rather than hike. Market expects cuts or holds, not hikes.”

“Inflation likely moderating by 2026, RBA typically cautious with rate hikes late in cycle. May meeting often sees status quo unless strong data surprises.”

“Given current economic conditions, inflation trends, and recent RBA statements, a slight increase in the cash rate is probable to curb inflation, though not certain.”