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VIEW: CBA Stick With June Hike Call Post-WPI

RBA

CBA retain their call for “the RBA to commence raising the cash rate in June 22. Whilst today’s (WPI) data wasn’t as strong as we forecast, we expect a red hot Q122 CPI that will take the underlying rate of inflation to ~3.4% (4.5% on a six month annualised basis). Inflation data in line with our forecast as well as a strong Q122 WPI and an unemployment rate that is expected to have a 3‑handle on it should be sufficient evidence for the RBA to conclude, “inflation is sustainably in the target range” at the June Board meeting. As such, it will be appropriate to start a tightening cycle.”

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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