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VIEW: CBA Still Look For One More Hike

RBA

In light of Q1 CPI CBA note that “services inflation stepped up to its highest annual rate since 2001, while the annual rate of goods inflation tracked lower.”

  • “The RBA will publish an updated set of underlying inflation forecasts that are not likely to be downwardly revised from the February Statement on Monetary Policy. Population growth has been stronger than anticipated and the RBA considers this inflationary.”
  • “We retain our call that the terminal cash rate will be 3.85% and we continue to favour the upcoming May Board meeting for the final 25bp rate increase.”
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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