The Reserve Bank of Australia has raised interest rates! The first major central bank to reverse course this year has arrived

A gunshot from the Southern Hemisphere! 🇦🇺
Today, the Reserve Bank of Australia announced a rate hike, becoming the first major developed country central bank to do so in 2026.
Why the sudden rate hike? The statement makes it very clear: inflation has made a fierce comeback! Especially with significant increases in services and housing costs, and a tight labor market, leading to "private demand growing much faster than expected." In other words, the economy is overheating a bit, and prices are hard to contain.
$XAG $XAU $PAXG
They even directly raised their forecasts for inflation, growth, and employment this year, with core inflation expected to remain outside the ideal range until the end of 2027. The stance is very clear: inflation is more troublesome than growth, so it’s better to act first.
What signals does this send to the market?
1️⃣ The global rate cut expectations may need to be reassessed, especially if other central banks also face persistent inflation.
2️⃣ The Australian dollar may strengthen in the short term, but pressure on stocks and bonds will increase.
3️⃣ For cryptocurrencies and other assets sensitive to global liquidity, asynchronous monetary policies among major central banks could intensify volatility. One central bank hikes, will others follow? The market will be guessing again.
#黄金白银反弹
In short, the monetary policy in 2026 has taken an unexpected turn right at the start, reminding us: inflation is definitely not a linear decline.
Central banks can pause, but the fight may not be over.
#白宫加密会议
Who do you think will be the next to follow with a rate hike?
Will the Federal Reserve dare to cut rates confidently this year? 🤔