The RBA is widely expected to lift the cash rate again today, perhaps to 1.35% — a level not seen since May 2019. Market Economics is forecasting a larger 75-basis-point move.
The RBA is behind its peers, having held rates near historic lows until increases in May and June that lifted its benchmark by a total 75 basis points to 0.85%. A 50-basis -point hike on Tuesday would mark the first time Australia has hiked by that amount at consecutive meetings.
Morgan Stanley, expects 50-basis-point increases in July and August, followed by quarter-point hikes through to November, taking the cash rate to 2.6%.
“Broader slowing of jobs and inflation won’t be felt until late this year, keeping 2H22 rate hikes on track, even as risks grow for 2023,” he said.
You can join my live show at 8pm Sydney when I discuss the outcome with Chris Bates, mortgage broker in Sydney. https://youtu.be/xur8dSSFcTw
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