Market analysis: The Reserve Bank of Australia has reiterated its intention to tighten monetary policy. There seems to be a high likelihood of another interest rate hike in May.

The Reserve Bank of Australia has sent a strong signal that it needs to further raise interest rates to curb inflation issues. Deputy Governor Andrew Hauser said at a business luncheon that if inflation remains too high, all measures will be taken to bring it down. He added that the central bank must respect the "speed limit" of the economy, referring to the issue of limited supply and strong demand. Given that the current forecasts of the Reserve Bank of Australia show that inflation is likely to hover above the target range for some time, the possibility of raising interest rates again in May seems high.