Macquarie: The Reserve Bank of Australia is expected to maintain a slightly contractionary tone when keeping interest rates unchanged in June.

Macquarie analysts say that when the Reserve Bank of Australia maintains the overnight cash rate unchanged next week, it should release a slightly tightening signal, which will increase expectations of a rate hike in August. They have not seen any evidence in recent comments from the Reserve Bank of Australia that the central bank is considering a shift towards an interest rate cut. Macquarie's analysis, based on artificial intelligence, suggests that the recent tone of the Reserve Bank of Australia is most similar to previous instances where rate hikes followed. Macquarie analysts believe that with inflation risks unresolved, the Reserve Bank of Australia wants to maintain the possibility of further rate hikes.