NAB ups RBA cash rate forecast to 2% by Dec (from 1.35%)
By Sophia Rodrigues
Published On 07 Jun 2022 , 04:15 PMEconomists at National Australia Bank are revising up their RBA cash rate forecast following the 50bps hike on Tuesday. NAB now expects the cash rate to reach 1.6% to 1.85% in the next two months (hikes of 75bps-100bps), and for the cash rate to touch 2% by December. NAB will publish a formal profile on Wednesday.
Previously NAB's forecast was for the cash rate to reach 1.35% by December.
"Our reading of the Statement suggests the RBA is now inclined to more quickly return monetary policy to a more neutral setting, which we see as in the 2-2.5% range," NAB wrote in a note. But it also reiterated: "We continue to think that cash rate pricing near 3.2% by Christmas and 3.85% in August next year, looks excessive."
LATEST SNIPPETS
Record orderbook for Australia new 2031; Record issuance likely
Orderbook for the 1% 21 November 2031 Australia government bond has closed with a record A$65.5 billion, surpassing t...
Published on : 26 Aug 2020 , 09:58 AMWill new Nov 2031 Australia govt bond syndication create a record?
Will the new 1% 21 November 2031 government bond set a new record for orderbook and issuance size? A good chance it w...
Published on : 26 Aug 2020 , 08:53 AMAustralia's 2031 bond syndication may hit record orderbook
Orderbook for the Australian government's 1% 21 November 2031 bond issue may hit a record high, likely surpassing...
Published on : 25 Aug 2020 , 04:57 PMRBA buying A$2B of April 2023, 2024 again
The RBA remains determined to keep 3-year Australian government bonds near its 0.25% target, offering to bu...
Published on : 13 Aug 2020 , 11:29 AMRBA shows more determination to keep 3-year AGS at 0.25% target
The RBA appears very determined to ensure 3-year Australian government bonds stays near its 0.25% target, doubling th...
Published on : 12 Aug 2020 , 11:33 AMRBA buys A$1.0B govt bonds but 2023 yld still slightly above 0.25%
The RBA bought A$1.0 billion of Australian government bonds at the third bond-buying auction since last Wednesday but...
Published on : 10 Aug 2020 , 03:56 PMRBA focuses on Nov 2022 bond at auction but yield still higher than 2023
At the bond-buying auction today, the RBA focused much of its purchases on the November 2022 government bond, spendin...
Published on : 06 Aug 2020 , 04:51 PMRBA to buy AGS for second straight day
The RBA has announced bond-buying via auction for the second consecutive day, keeping the notified amount unchanged a...
Published on : 06 Aug 2020 , 11:42 AMWeighted average yield at RBA's 2023 bond-buying 0.2575%
The RBA bought A$500 million of 5.5% April 2023 Australian government bonds on Wednesday at a cut-off of 0.2525% and...
Published on : 06 Aug 2020 , 09:02 AMRBA buying only A$500m of one bond line -- April 2023
The RBA is buying A$500 million of April 2023 government bonds as part of its bond-buying program which it resumed We...
Published on : 05 Aug 2020 , 12:45 PM