Reserve Bank of Australia raises interest rate to 4.60%, global inflationary pressures prolong tightening cycle

The Reserve Bank of Australia announced a 25 basis point interest rate hike to 4.60% and stated that it may still tighten policy if necessary. Global inflationary pressures and risks in energy and raw material supply limit the room for central bank interest rate cuts. Deutsche Bank estimates that if the hoarding trend continues, copper prices may rise to $220500 per ton in the second quarter of 2027. The rise in energy and raw material prices has slowed down the decline in inflation, forcing central banks to maintain higher interest rates for a longer period of time. The global market is facing the challenge of difficult inflation reduction and high capital costs.