AUDJPYAUDJPY EXCHANGE RATE =98.984
RBA RATE =3.60%
What is the cash rate?
The cash rate is the interest rate that banks pay to borrow funds from other banks in the money market overnight. It influences all other interest rates, including mortgage and deposit rates.
In technical terms, it is the interest rate on unsecured overnight loans between banks (loans banks use to manage their liquidity).
AU10Y=4.137%
Inflation in Australia=
Consumer Price Index
2.1%
Monthly Indicator
3.0 %
what is inflation ??Inflation is an increase in the level of prices of the goods and services that households typically buy.
A powerful lesson from history is that low and stable inflation is a prerequisite for a strong economy and sustained full employment and growth in real wages.
The Statement on Monetary Policy (SMP) sets out the RBA’s assessment of current economic and financial conditions as well as the outlook that the Monetary Policy Board considers in making its interest rate decisions.
Next published 4 November 2025
the Reserve Bank of Australia (RBA) Governor is Michele Bullock. She assumed office on September 18, 2023, becoming the first woman to hold the position. Michele Bullock has an extensive background within the RBA, having served as Deputy Governor and in various senior roles related to monetary policy, financial systems, and payments.
The RBA has maintained this rate after a series of earlier cuts during the year, aiming to balance inflation control with economic growth considerations.
Governor Bullock described the current monetary policy stance as "marginally tight," reflecting ongoing efforts to manage inflation while supporting economic conditions.
BANK OF JAPAN.
The current Governor of the Bank of Japan (BOJ) is Kazuo Ueda, who has been serving since April 2023. Ueda is a respected economist with a background as a professor emeritus at the University of Tokyo and extensive experience in Japanese economic policy.
BOJ Interest Rate
The BOJ has maintained an ultra-low interest rate policy for years, but recently under Governor Ueda, the bank has started normalizing monetary policy.
Current key policy rates is 0.50%, signaling a gradual shift away from near-zero or negative rates that prevailed for nearly two decades.
Governor Ueda has emphasized caution, stating the need for more data and gradual rate adjustments before fully tightening policy.
JP10Y=1.655%
TECHNICALLY THE STRATEGY WILL BE ON INTEREST RATE DIFFERENTIAL AND BOND YIELD .
AUDJPY INTEREST RATE DIFFERENTIAL (3.60%-0.5%)-3.1% LONG AUDJPY CARRY TRADE.
BONDYIELD DIFFERENTIAL (4.137%-1.655%)=2.482%
HOW NEXT MPM MINUTE WILL BE WATCHED FOR RATE HIKE .
THE RATE DRIVING ADVANATAGE REMAINS WEAK AND COULD BE REVERSED ON RATE HIKE BY BOJ MPM DESCISION .
TRADING IS 100% PROBABILITY ,RISK MANAGEMENT IS KEY .
#AUDJPY #AU10Y #JP10y
