Australian Dollar Steady as RBA Seen on Hold After Soft Wage Data – BBH

BitcoinWorld Australian Dollar Steady as RBA Seen on Hold After Soft Wage Data – BBH The Australian Dollar held steady in early trading as analysts at Brown Brothers Harriman (BBH) suggested the Reserve Bank of Australia (RBA) is likely to remain sidelined following softer-than-expected wage growth data.

RBA Policy Outlook After Soft Wage Figures BBH’s assessment, released this week, points to the RBA keeping its cash rate unchanged at 4.35% in the near term.

The softer wages data, which showed annual wage growth slowing to 3.5% in the fourth quarter of 2025, reduces the urgency for the central bank to consider further tightening.

However, BBH notes that inflation remains above the RBA’s 2-3% target band, limiting the scope for rate cuts. The market has priced in a low probability of a rate move at the next RBA meeting in February, with most economists expecting a prolonged pause.