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MNI RBA Preview - October 2022: 50bp But A Very Close Call

EXECUTIVE SUMMARY

  • We think that the data and RBA communique point to a final 50bp hike at the Bank’s October meeting, which would leave the cash rate target at 2.85%.
  • Market pricing surrounding the terminal rate has shifted higher again in recent weeks’ although the June peak of ~4.50% has not been breached.
  • The RBA has made it very clear that its decisions will be data dependent and this month’s data show that the economy continues to operate in a resilient manner.
  • Click to view full preview: MNI RBA Preview - October 2022.pdf
Fig.1: The Recent Evolution of OIS Implied Pricing Of The RBA Cash Rate (%)

Source: MNI – Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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