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 PM

Westpac 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

RBA buys 2024 bond at 0.1142% weighted avg yield; 2030 bond at 0.9133%

The RBA bought A$2.0B of April 2024 government bond at a cut-off yield of 0.1075% and weighted average yield of 0.114...

Published on : 12 Nov 2020 , 06:26 PM
RBA buying A$2B of April 2024 plus A$2B QE

The RBA is buying A$2 billion of April 2024 government bonds under the yield target policy, in addition to its purcha...

Published on : 12 Nov 2020 , 11:24 AM
RBA may buy 3-year government bonds again

Three-year yield on Australian government bonds are currently above the 0.10% target, raising speculation on whether...

Published on : 12 Nov 2020 , 10:51 AM
Headlines from the RBNZ’s November MPS on FLP:

Headlines from the RBNZ’s November MPS on FLP:

-Plan to implement Funding for Lending Programme in ea...

Published on : 11 Nov 2020 , 12:09 PM
RBA buying semis in March 2025 to May 2028 maturity

The RBA is buying A$1.0 billion semis today under the A$100 billion bond-buying program. 

The purchase...

Published on : 11 Nov 2020 , 11:32 AM
Results of RBA's Bond-buying Auction Monday

Results of the RBA's bond-buying auction Monday, consisting of A$1.5 billion under 3-year yield target and A$2.0...

Published on : 09 Nov 2020 , 03:54 PM
RBA buying total A$3.5B under 3-yr target, QE

The RBA is buying A$3.5 billion of government bonds today, with A$1.5 billion as part of its 3-year yield target, and...

Published on : 09 Nov 2020 , 11:33 AM
Headline from RBA Nov Statement on MonPol

RBA Not Contemplating Further Reduction In Interest Rates
RBA: Focus Will Be QE Program, Prepared To Buy More...

Published on : 06 Nov 2020 , 11:34 AM
RBA buying A$2B of Nov 2028-May 2032 at 1st QE

The RBA is buying A$2 billion of November 2028 to May 2032 government bonds (excluding December 2030 bonds) as p...

Published on : 05 Nov 2020 , 11:21 AM
RBA re-opening media lockups?

It appears the RBA's media lock-ups will restart from Friday when the Statement on Monetary Policy will be publis...

Published on : 04 Nov 2020 , 04:16 PM