🏦🇦🇺RBA Has Room to Catch Up: Cable FX Macro

• The Australian central bank started hiking rates in May 2022, the Cash Rate Target was lifted 425bps since then. Relatively speaking, the amount of tightening seems to have been short vs other G10 central banks
  

• An insurance rate hike in November was the last upside move we have seen in developed markets, however, the policy rate was left at 4.350%. RBA Cash Rate Target stood below most central banks, including the ECB (until the June rate cut)

• Policymakers will still have June price data to digest before deciding on August. Even if the Cash Rate was lifted by another 25bps, policy would be left below the Fed, BoE, and BoC. The Australian dollar would be supported as market pricing diverges and sees most G10 central banks lowering rates into 2025