Free Trial

VIEW: RBC Add Extra 25bp Hike Into Profile & Look For Terminal Rate of 3.10%


RBC write “with the cash rate now firmly in the neutral zone, and early signs of moderation in the suite of housing-related indicators, with the impact of rate hikes yet to fully filter through, conditions are emerging for the RBA to step down its pace of tightening. Governor Lowe’s Anika Foundation speech appeared to lay the groundwork for this but we are mindful that the global pull is still very much skewed towards outsized policy rate increases, a singular focus on inflation and a shift into restrictive settings. Accordingly, we retain our base case for 25bp hikes in Oct and Nov but add a final 25bp to Dec to see terminal at a clearly restrictive 3.10% by year-end. The risk still remains skewed towards another 50bp in Oct and even higher terminal.”

MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.