CBA added on another +50bp to its terminal Reserve Bank of Australia cash rate

The Reserve Bank of Australia titled more hawkish in its decision and Governor Lowe's statement yesterday:

• ForexLive Asia-Pacific FX news wrap: RBA rate hike as expected, fuel for the AUD.

CBA had been forecasting yesterday's rate hike as the last, but have now tipped 3.85% as the terminal rate yet to come, from its prior 3.35%

Via Gareth Aird, head of Australian economics at CBA

• the surprise was not in the decision, but rather the shift in tone and forward guidance in the Governor’s Statement
• This change implies that the RBA Board has essentially made up their mind and intend to raise the cash rate further over coming months, if the economic data prints in line with their updated forecasts

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There will be new forecasts from the RBA on Friday this week:

• AUD traders heads up - RBA Statement (SoMP) due on Friday, then Lowe speaks next week

Australia's negative real cash rate features on the front page of the Reserve Bank of Australia website:

The next official CPI data is due on March 1, when we'll get the monthly CPI data for January.