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Ex-RBA’s Edwards: RBA Likely To Raise Cash Rate 4 Times By Year-End (WSJ)

RBA

A WSJ interview with ex-RBA board member John Edwards suggest that the RBA could hike the cash rate to 1.0% by the end of ’22, with liftoff set to be implemented by August.

  • Current market pricing is a little more aggressive (the IB strip currently looks for the cash rate to sit at ~1.25% come then end of ’22).
  • Note that there is a bit of a sell-side consensus forming around an August lift off when it comes to the cash rate, while the market is more aggressive, with IB strip pricing a little over 20bp of tightening come the end of the Bank’s June decision.
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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