VIEW: ING: It Is Probably All 25bp From Here Until The Peak

ING note that “it is possible to imagine that the run of data from now on will indeed determine how the RBA responds as it takes the cash rate closer to its eventual peak. But today's decision suggests otherwise. Instead, it looks more probable now that the RBA will simply stick to a 25bp rate increase pace until it believes it has taken rates high enough. That may be soon into the New Year when rates hit 3.35% or 3.60%. At that point, re-setting mortgages may put an additional burden on the household sector, it may be clearer to the RBA if they still have more work to do, or if they can sit tight and wait for inflation to turn down. Until then, it looks like it is 25bp all the way.”