“Interest Rate Decision in Australia and its Impact on the Stock Market: Latest Updates”

In Australia, we will find out today whether the central bank will leave the interest rate unchanged at 3.6 per cent, or whether it will be raised. According to Trading Economics, the consensus expects interest rates to remain unchanged this month as well, which was the same decision as in April. Before that, the central bank raised interest rates ten times in a row.

At 6.30 am the fact came in, which was an interest rate increase of 0.25 percentage points, up to a total of 3.85 per cent. Market expectations of an interest rate break thus proved to be wrong.

S&P/ASX 200-index in Sydney was flat before the interest rate decision came in – then the stock exchange fell straight down 1.1 per cent.

There may be more elevations

The rise in prices in the country is showing signs of calming down, but it is “still too high”, according to Central Bank Governor Philip Lowe. In the first quarter, inflation came in at 7 per cent, compared to the same quarter last year.

– Given the importance of getting inflation back to the target within a reasonable time frame, the executive board considered that there was a need for a further increase in the interest rate today, he said according to TDN Direkt.

The forecast is still that it will take a few years before inflation returns to the upper end of the target range. Inflation is expected to be 4.5 percent this year, while it will fall to 3 percent by mid-2025.

Furthermore, Lowe said that some further tightening of monetary policy may be necessary to ensure that inflation returns to target within a reasonable time frame, but that depends on how the economy and inflation develop.

Growth in Hong Kong

In Japan rising Nikkei 0.1 per cent, while the wider Topix– the index weakens by 0.2 per cent.

In mainland China, the stock exchanges are closed. Hang Seng in Hong Kong is up 0.1 percent. Chief Administrative Officer John Lee announced at a press conference on Tuesday that the region recorded economic growth of 2.7 percent in the first quarter.

– I think Hong Kong’s second quarter economy will be better than the first quarter, and this year’s economy will be better than last year, he said further according to CNBC.

Kospi in South Korea, 0.7 per cent is strengthened. In India is Sensex up 0.6 percent, and Straits Times in Singapore rises 0.4 per cent.