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VIEW: CBA: April Minutes Confirm The May Meeting Is ‘Live’

RBA

CBA note that “the Minutes today indicate that the Board will discuss the case to raise the cash rate by 25bp or leave policy on hold at the upcoming May meeting.”

  • “The policy decision in May will be heavily influenced by the RBA’s updated economic forecasts, particularly their inflation forecasts.”
  • “The April Board Minutes discuss at length the role that stronger than expected population growth could play in the outlook for the economy and in particular inflation and wages.”
  • “The Q1 23 CPI, to be published next week (26 April), could make or break the case for the RBA to raise the cash rate at the May Board meeting.”
  • “Our base case sees the RBA deliver one final 25bp rate hike at the May Board meeting, but at this stage it looks a line ball call.”
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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