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
Moody's warns profits of big four Australian banks under pressure
Profitability of the big four Australian banks is under pressures from low interest rates amid weak credit growt...
Published on : 25 Nov 2019 , 03:35 PMAustralia Oct Labor Data Dovish for RBA Dec Meeting
Australia's unemployment rate rose to 5.3% in October from 5.2%, due to 19,000 fall in employed numbers. This was...
Published on : 14 Nov 2019 , 12:00 AMWhy RBNZ will Hold OCR at 1%
I am a bit surprised with market reaction to RBNZ's inflation expectations survey yesterday. While I acknowledge...
Published on : 13 Nov 2019 , 12:00 AMMarket Pricing for RBNZ Cut --How Much is "Will do"?
In their markets outlook on Nov 11, economists at BNZ wrote, "RBNZ shouldn’t cut this week but probably wi...
Published on : 13 Nov 2019 , 12:00 AMWhat does RBA's Gentle Turning Point Refer to?
RBA Governor Philip Lowe first referred to gentle turning point at the Parliamentary testimony in August when he said...
Published on : 07 Nov 2019 , 12:00 AMExpect Dovish RBA Statement, Refined Forward Guidance
It is very unusual for both market and economists to be strongly expecting a particular outcome (hold) for a RBA boar...
Published on : 05 Nov 2019 , 12:00 AMAustralia: More Reason to Buy vs Rent Dwelling
More reason to buy vs rent? For the first time since at least 2007, gross rental yields for properties in Australia...
Published on : 01 Nov 2019 , 12:00 AMWill RBA Debate Further Easing at Nov Meeting?
Even before the RBA Nov board meeting begins, I am curious to find out if there will be a vigorous debate about...
Published on : 30 Oct 2019 , 07:21 AMRBA Should Cut Now to Avoid QE
A few weeks back I wrote an article about how in theory the RBA could avoid QE, but to do so requires continuation of...
Published on : 31 Oct 2019 , 07:15 AMAustralia: Housing Group Numbers Disappoint Most in CPI
The most disappointing numbers in Australia Q3 CPI are the ones for housing group. Rent rose 0.4% y/y (and below 1.0%...
Published on : 30 Oct 2019 , 07:13 AM