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
Greater interest in ASX’s Bond Basket for September 3-Yr Bond Futures
More than usual interest this time in the bond basket for ASX’s September futures contract for three years. The...
Published on : 04 Mar 2021 , 11:11 AMRBA succeeds in driving 3-year yield down at bond-buying auction today
The RBA's aggressive buying of bonds for second consecutive day under the 0.1% three-year yield target polic...
Published on : 26 Feb 2021 , 02:52 PMAOFM doubles T-Notes issuance next week, as expected
As expected, the AOFM doubled the amount of T-Notes at tenders next week to A$2 billion from A$1 billion in the last...
Published on : 26 Feb 2021 , 12:10 PMRBA buying A$3B under yield target policy (as CB-Intel flagged)
The RBA has announced it will buy A$3 billion of the April 2023 and April 2024 government bonds under the yield targe...
Published on : 26 Feb 2021 , 11:38 AMAOFM may raise T-Notes tender next week
After reducing weekly T-Notes tenders to just A$1.0 billion (lowest since March last year) last two times, the AOFM m...
Published on : 26 Feb 2021 , 10:56 AMCould RBA surprise with bond-buying today?
All eyes on the RBA today for any announcement on bond purchases under the three-year yield target policy. Since Nove...
Published on : 26 Feb 2021 , 10:35 AMAustralia wage price index beat expectations as some wage reductions unwind
Australia's wage price index beat expectations with a 0.6% q/q and 1.4% y/y rise in December 2020 quarter, data p...
Published on : 24 Feb 2021 , 11:37 AMAOFM sells May 2032 bond at 1.69% weighted average yield
The AOFM sold A$2 billion of the 1.25% May 2032 government bond at weighted average issue yield of 1.6900%.&nbs...
Published on : 24 Feb 2021 , 11:20 AMAOFM's A$2B May 2032 tender result will be interesting
Looking ahead to the results of the AOFM's tender of A$2 billion of 1.25% May 20232 government bonds in about 15...
Published on : 24 Feb 2021 , 10:46 AMRBA buying A$1B of April 2024 under yield target policy
The RBA meets market expectation by announcing purchase of bonds under the three-year yield target policy, apart from...
Published on : 22 Feb 2021 , 11:34 AM