RBA's Hawkish Hold: Inflation Risks Tilt Up, Putting the Brakes on AUD Rate Cuts
The Reserve Bank of Australia (RBA) Board, in its December 9, 2025 meeting, unanimously decided to hold the Cash Rate Target steady at 3.60 per cent. However, the accompanying statement signals a critical shift in risk assessment: the risks to inflation have tilted to the upside.
Inflation Relief? Falling Expectations in Consumer Sentiment Offers a Lifeline to the Fed
The preliminary US Index of Consumer Sentiment for December 2025 ticked up slightly to 53.3, defying expectations of continued decline. While the overall mood remains "broadly somber," the key takeaway for Forex Traders is the significant and sustained drop in year-ahead inflation expectations to 4.1%—the lowest level since January 2025.