ANZ economists expect RBA to drop April 2024 target if guidance shifts

By Sophia Rodrigues

Published On 27 Oct 2021 , 09:18 AM

Economists at ANZ Bank expect the RBA to drop the 10bps target on April 2024 bond if it brings forward timing for the first hike. Until that happens, the target on the bond will remain in place, ANZ's head of Australian economics David Plank wrote in a note.

If the RBA continues to see the first move in the cash rate as being in 2024 then the Apr '24 target will remain in place until it effectively 'fades' away, Plank wrote.

If the RBA's expectation about the first hike is brought forward, the target will have to change and the easiest option is to simply drop it, he said.

 

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