VIEW: J.P.Morgan: Further monetary policy tightening in the pipeline

J.P.Morgan note that ”while global commodity prices have stabilized more recently, the bias for risk around inflation remains tilted to the upside (JPM FY22 CPI forecast: 5.1%). On the back of Thursday’s policy rate move, we continue to expect further monetary policy tightening to arrest rising inflationary pressures. We expect a further 50bp hike at the upcoming August meeting and a further 25bp in September, bringing the RRP rate to 4.0% this year. That said, we do not rule out the front-loading of monetary policy rate hikes and will revisit our policy rate call as the underlying data evolves.”