Traders don’t believe the RBA’s warning on rates

Traders still expect the Reserve Bank of Australia will cut interest rates this year even though the central bank ruled out the prospect, saying inflation was still “too high”.

The RBA, as expected, left the cash rate at a 12-year high of 4.35 per cent for its sixth consecutive meeting, saying that some of the recent data had raised the alert for the board. “We are not ruling anything in or out, but vigilance is to the upside,” said governor Michele Bullock at a media conference following the policy decision.