More to come
WPAC on the Reserve Bank of Australia:
- We have lifted our forecast terminal RBA cash rate from 3.85% to 4.1%
- Since October we have consistently held the view that the cash rate would peak in May at 3.85%. We still see the date of the peak as May 2023 but now see that peak as slightly higher.
- The previous view envisaged a 25 basis point hike in March followed by a pause in April with the final hike of 25 basis points in May. The lift in the RBA’s terminal rate from 3.85% to 4.1% reflects an additional hike in April.
- Over the course of the last few months of 2022 the Board consistently referred to the possibility of pausing and, as recently as December, considered a pause as one of three policy options.
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The rate hike cycle so far from the RBA:
