CBA ups RBA rate forecast; sees 2.1% year-end, with risk of 2.35%

By Sophia Rodrigues

Published On 07 Jun 2022 , 04:58 PM

Economists at Commonwealth Bank have revised higher their forecast for RBA cash rate, now expecting the rate to reach 2.1% by end-2022, with a risk of 2.35%.

Previously CBA's forecast was for the cash rate to touch 1.35% by December.

CBA expects RBA to hike 50bps in July, followed by 25bps hikes in August, September and November. The risk for 2.35% cash rate by December would mean 50bps hike in August.

"There has been a clear shift in tone and stance from the Board and we now expect the RBA to front load rate hikes," CBA wrote in a note.

 

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