Institution: The Reserve Bank of Australia may have put away the tool of cutting interest rates.

Judo Bank economist Matthew De Pasquale said that the interest rate cutting cycle of the Reserve Bank of Australia has come to an end at a level of 3.6%. He added that the market continues to reflect expectations of a small probability of rate cuts next year, but this reflects the combined effects of balance sheet dynamics and tail risk hedging, rather than the market truly believing that the next step will be a rate cut. Data continues to show that the country's economy is recovering. He stated that this indicates that the next step is likely to be a rate hike unless the country's economy is impacted otherwise.