RBA Rate Peak Revised to 4.85% Amid Rising Inflationary Pressures

The Reserve Bank of Australia (RBA) March meeting minutes revealed a clear bias toward further near-term tightening, aligning with analyst forecasts of a 4.85% terminal rate. Policymakers noted that the economy continues to operate with "excess demand" alongside persistently tight labor market conditions. Furthermore, the minutes highlighted increased inflation risks following the recent surge in global oil prices and their potential secondary effects. In light of these developments, analysts at ActionForex maintain their projection for two additional rate hikes in June and August. From a technical perspective, momentum for the AUD/USD pair has turned higher as downside risks have begun to ease. This hawkish fundamental backdrop, combined with improving technical indicators, is expected to provide ongoing support for the Australian Dollar against its major peers.