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MNI RBA Preview - August 2022: Another 50 Due

RBA

EXECUTIVE SUMMARY


  • The continued tightening of the labour market, level of inflation and expected acceleration in price pressures through year-end means that the RBA will likely lift its cash rate target by 50bp come the end of its August meeting.
  • Looking ahead the Bank will likely deploy another 50bp hike in September, which will get it near Lowe’s baseline assessment of neutral. After that, the fact that the RBA meets monthly gives it the opportunity to be nimble, particularly if the likes of the U.S. Fed decide to slow the rate of tightening from September.
  • Looking ahead the Bank will likely deploy another 50bp hike in September, which will get it near Lowe’s baseline assessment of neutral. After that, the fact that the RBA meets monthly gives it the opportunity to be nimble, particularly if the likes of the U.S. Fed decide to slow the rate of tightening from September.
  • Click to view full preview.

Fig. 1: ‘Big 4’ RBA Expectations Vs. The Cash Rate Implied By the IB Strip


Source: MNI Market News/ASX/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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