Australia 10-Year Bond Yield Steady After RBA Minutes
Australia’s 10-year government bond yield held around 4.49% as investors assessed the Reserve Bank of Australia’s December policy meeting minutes.
The minutes revealed increased confidence among policymakers in controlling inflation, though ongoing risks were acknowledged.
The RBA emphasized the need for "sufficiently restrictive" policy until inflation uncertainty is reduced and the 2–3% target is reached, reaffirming that returning inflation to target is the top priority and stressing a data-driven approach to future rate decisions.
Meanwhile, economic output grew weakly in Q3 2024, and while consumption picked up in October and November, it’s too early to determine if this reflects a sustained recovery or just pre-holiday spending.
Trends in consumer spending will be crucial for future GDP growth and labor market developments, potentially influencing expectations for future monetary policy.