Westpac also ups RBA cash rate forecast to 2.1% by Dec (from 1.75%)
By Sophia Rodrigues
Published On 07 Jun 2022 , 05:21 PMWestpac chief economist Bill Evans has raised his forecast for RBA cash rate, now expecting the policy rate to end 2022 at 2.10% versus previous forecast for 1.75%.
Evans expects RBA to hike 50bps in July, followed by 25bps in August, and then two more 25bps hikes in November and December.
The forecast for terminal rate is 2.35% with a final 25bps hike in February 2023.
Evans says the RBA statement clearly signals that it now "recognises that it has a significant challenge to contain inflation and today’s decision points to it now being prepared to act decisively. For that reason, we expect that the next move in July will also be a 50 basis point increase."
LATEST SNIPPETS
Price guidance for AOFM's Dec 2030 bond 7-10bps over 10-yr futures
AOFM has announced the price guidance for the 1% December 2030 Treasury bond -- a spread of 7bps to 10bps over the im...
Published on : 12 May 2020 , 09:06 AMAOFM announces joint lead managers to 2030 syndication
AOFM has announced joint lead managers for the planned syndication of the new December 2030 government bond next week...
Published on : 08 May 2020 , 12:51 PMAOFM to sell new bond line maturing 2030 via syndication
The AOFM has announced a new bond line to be issued via syndication. The bond is December 2030. The joint...
Published on : 08 May 2020 , 12:15 PMFrom RBA's May SOMP Baseline Forecasts
From the RBA’s May Statement on Monetary Policy:
Baseline Scenario:
--GDP growth -8% June 2...
Published on : 08 May 2020 , 11:32 AMAOFM sells A$1.5B 2023 bond below RBA's 0.25% target
The AOFM has sold A$1.5 billion of 5.5% April 2023 government bond at a weighted average yield of 0.2348%.&...
Published on : 08 May 2020 , 11:05 AMNZ inflation expectations lowest on record; house price seen -5% in a year.
New Zealand inflation expectations fell to the lowest on record, with one-year consumer price index inflation at 0.74...
Published on : 07 May 2020 , 01:14 PMRBA buys A$600M of semis
The RBA bought A$600 million of semis via bond-buying auction today within the maturity January 2021 to December 2023...
Published on : 06 May 2020 , 05:07 PMAOFM sells 2031 bond at weighted avg yield 0.9369%
The AOFM has sold A$2.5 billion of 1.25% June 2031 government bond at a weighted average yield of 0.9369%. ...
Published on : 06 May 2020 , 11:10 AMRBA buys A$500m govt bonds, mostly Nov 2027
The RBA bought A$500 million of April 2027 to November 2028 government bonds, focusing 65% of the purchase on the Nov...
Published on : 04 May 2020 , 04:19 PMRBA buying April 2027-Nov 2028 bonds
After pausing on Thursday, the RBA is back to buying government bonds via auction. The RBA is buying A$500 million of...
Published on : 04 May 2020 , 02:44 PM