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VIEW: ANZ: More Tightening Likely

RBA

ANZ write “while the RBA has taken the opportunity to pause this month, we see more rate hikes ahead. Lowe has expressed a strong desire to preserve the gains in the labour market made over the past couple of years. This objective likely contributed to the decision to pause and give time to assess the data at today’s meeting. But we continue to think inflation will prove persistent enough to require the RBA to tighten monetary policy further in the months ahead. In our view, the question is not so much one of ‘where’ the RBA gets to (we still favour 4.10% as the terminal rate), but ‘when’ it gets there.”

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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