The Reserve Bank of Australia (RBA) has raised the cash rate by 25 basis points to 3.6%, as expected. ANZ Bank economists expect the central bank to make further hikes in April and May, to as high as 4.1%..
More tightening to come
“The RBA delivered the expected 25 basis point rate hike. Today’s statement confirmed that the RBA plans to raise the cash rate in the coming months. However, the changes introduced in the communication suggest that the calendar will depend more on the datagiving the RBA the option to pause if the recent run of weak data continues.”
“We don’t expect that to be the case and We continue to expect the cash rate target to rise 25 basis points in both April and May to a maximum of 4.1%..”
“In your speech tomorrow on Inflation and Recent Economic Data, we expect Governor Lowe to further downplay the recent softness in the data and highlight the current high inflation and costs to the economyas well as the probability of a tightening in the coming months.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
