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VIEW: Citi Expects Rates To Peak At 3.85% In Q2 2023

RBA

Citi chief economist Williamson said that today’s slump in December retail sales reflected a large amount of spending being brought forward into November but may also reflect the impact of higher rates. He doesn’t believe that this will stop the RBA from hiking 25bp in February given Q4 inflation. Citi expects the RBA to revise up its Q2 2023 CPI forecast to 6.8% from 6% and the trimmed mean to 6% from 5.4%. Thus Williamson pojects three more 25bp hikes. (The Australian)

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