RBA Raises Rate by 25bps to 4.60%, AUD/JPY Dips to Two-Week Low

On September 25, 2023, the Reserve Bank of Australia (RBA) increased its policy rate by 25 basis points to 4.60%. Following the hike, the Australian Dollar weakened against the Japanese Yen, with the AUD/JPY pair falling to a two-week low near 110.70 during the early European session on Tuesday, according to FX Street.

FX Street (TD Securities) described the September rate increase as a risk-management move rather than the beginning of a new tightening cycle. They also noted that no further RBA hikes are expected in 2026, and the policy rate is likely to remain on hold through 2027.

For Japanese investors and traders, the RBA’s cautious stance and the corresponding AUD/JPY movement highlight continued volatility in currency markets, emphasizing the importance of monitoring central bank policies in the Asia-Pacific region.