The domestic stock market has ticked up a notch as analysts and mortgage holders wait for the Reserve Bank’s latest decision on interest rates, due to be delivered at 2.30pm this afternoon.
At noon AEST on Tuesday, the benchmark S&P/ASX200 index was up 32 points, while the broader All Ordinaries was up 37 points.
Australia’s Reserve Bank is widely expected to leave interest rates on hold on Tuesday, with traders focused mostly on whether the central bank will change its tone after last month’s higher-than-expected inflation report.
The market is optimistic that the Reserve Bank will hold rates steady at its pre-budget meeting.Credit: Oscar Colman
“While we don’t expect the board to explicitly discuss a rate hike, the communication on Tuesday will be more hawkish than March,” ANZ researchers Brian Martin and Daniel Hynes predicted.
For example, the RBA might talk about the risk of inflation not returning to target rising and the board not ruling anything in or out, they said.
Ten of the ASX’s 11 sectors were in the green at midday, with financials down slightly after an underwhelming earnings report by ANZ.