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
No RBA Rate Cut Call from Any Big Four Bank Yet?
I must say I am surprised none of big four banks have made RBA rate cut call......yet
Published on : 12 Feb 2019 , 07:05 AMRBA may not turn dovish yet but acknowledge balance of risks have changed
One of the most awaited RBA cash rate statements is due today and hardly likely to be exciting. Key themes would...
Published on : 05 Feb 2019 , 07:02 AMAPRA will Change Loan Serviceability Floor
Given there isn't any other quantitative restriction with respect to macroprudential policy for housing market th...
Published on : 31 Jan 2019 , 06:33 AMRBA Would Change Next Move Up Guidance
Two factors were key to RBA's next rate move up guidance -- Fed and BOC rate hike paths. It was hardly about...
Published on : 10 Jan 2019 , 06:29 AMHappy New Year
Happy New Year everyone. After a mixed 2018, I am looking forward to creating special memories in 20...
Published on : 02 Jan 2019 , 06:28 AMAustralia's export -- the term GFC
How many knew this? The label ‘GFC’ was an export from Australia to the rest of the world - Guy Debelle Published on : 06 Dec 2018 , 05:44 AM