Australia Rate-Cut Bets Ease as RBA Stresses Inflation Risks

Traders pared bets on near-term policy easing in Australia as the central bank warned that third-quarter inflation may come in stronger than expected and signaled patience on further interest rate cuts.

The Reserve Bank’s board held its cash rate at 3.6% on Tuesday after three cuts this year, while reiterating that it remains cautious about the outlook and stressing that data will dictate future moves.

“We have to be data dependent,” Governor Michele Bullocksaid in a briefing, where she was asked multiple times about the future path of policy, which she described as currently “probably a little bit restrictive.” ...