ASX to Open Higher, RBA to Make Interest Rate Decision

Subheading: Central Bank Set to Weigh Inflationary Pressures

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The Australian Securities Exchange (ASX) is expected to open higher today as investors anticipate a positive market sentiment following the Reserve Bank of Australia's (RBA) rate decision. The central bank is scheduled to announce its policy decision this afternoon, and analysts speculate a potential interest rate hike amid rising inflationary pressures.

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At its last meeting in February, the RBA held the cash rate steady at 4.35%, marking the fourth consecutive meeting without a change. However, since then, inflation has remained elevated, prompting market expectations of a rate hike to curb further price increases.

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In its February statement, the RBA projected inflation to fall from 4.1% at the end of 2023 to 3.3%. However, with inflation currently at 4.7%, higher than the RBA's target of 2-3%, a rate hike is seen as a necessary measure to bring inflation under control.

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The RBA's decision will be closely watched by economists and market participants, as it will provide insights into the central bank's assessment of the economic outlook and its commitment to managing inflation. The market will be looking for any signals from the RBA on the future trajectory of interest rates.