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ANZ Lifts Terminal Cash Rate Forecast

RBA

ANZ now expects the RBA to stop hiking rates at 3.6% up from its previous forecast of 3.35% and for the central bank to stop tightening in May rather than in December, according to the Australian. It believes that the slowdown in the pace of tightening means that the cycle will be longer and result in a higher peak.

  • "We see the RBA’s decision to slow the pace of rate hikes as extending the duration of the cycle," ANZ Head of Australian Economics Plank said.
  • He continued, "The slower pace of rate hikes increases the risk that rates need to go higher than previously expected, as demand remains too strong and sentiment is initially boosted by the RBA’s moderation."

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