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Australia's RBA rules out rate cuts in near-term

BY Reuters | ECONOMIC | 08/06/24 02:49 AM EDT

SYDNEY (Reuters) - The head of Australia's central bank on Tuesday ruled out rate cuts in the near term, saying policy had to remain restrictive to bring stubborn core inflation to heel.

Speaking after a policy meeting, Reserve Bank of Australia (RBA) Governor Michele Bullock said the bank's board had discussed raising rates at the meeting, but decided policy was in the right place for the time being.

Bullock emphasised markets had got ahead of themselves in pricing in rate cuts as early as November and suggested an easing was unlikely for the next six months or so.

(Reporting by Wayne Cole; Editing by Himani Sarkar)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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