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The revised forecast from WPAC
- We now expect the Reserve Bank Board to raise the cash rate by 50 basis points in November for a terminal rate of 3.85% by March, revised up from 3.6%.
comes after the surge in the Australian inflation rate reported yesterday:
More from yesterday re this:
I also posted yesterday opposite views:
ANZ
- lift their RBA cash rate peak to 3.85% (from 3.60%)
- 50bps hike in November is possible, but retain their call for 25bps
- “the RBA will prefer to hike more frequently than shift back to 50bp given the reasoning behind the decision to go 25bp in October.”
CBA:
- see a +25bp at the November meeting
- add in a +25bp in December in the wake of the inflation data, CBA were previously at an ‘on hold’ December forecast
Reserve Bank of Australia Governor Lowe – speaks next week following the meeting:
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