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Goldman Now Sees RBA Peak At 4.85%

RBA

Goldman Sachs has raised its terminal rate hike expectation for the RBA (to 4.85% from 4.35%). The bank now expects a 4.85% peak in September. They saw a hawkish shift in the RBA's reaction function during Lowe's speech earlier today. They also noted that the Q1 GDP report showed a surprise acceleration in unit labor costs.

  • The bank now expects hikes in July, August and September. Previously it had expected a 25bp hike in July.

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