Nomura Recommends Betting on RBA and Federal Reserve to Hold Rates Through Year-End 2026

According to Nomura strategist Andrew Ticehurst, the firm recommends positioning for the Reserve Bank of Australia and the Federal Reserve to maintain interest rates through the end of 2026. Ticehurst stated that Nomura's fundamental outlook and short-end rate views diverge from current market pricing, with the RBA having a long way to go before considering rate cuts despite expected below-trend growth in Australia.

Meanwhile, Nomura's U.S. counterparts view Federal Reserve Chair Powell's recent stance as less hawkish than market perception, with his comments this week at the European Central Bank's Sintra Forum leaning toward a more dovish tone.