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VIEW: Westpac Retain Peak Cash Rate Call, Although Time To Reach Nudged Further Out

RBA

Westpac note that “the Board decided to stick with the 25 basis point path despite a significant lift in the inflation forecast for 2023 from 4.3% to 4.75%. It now seems that the Board is prepared to await the impact of the series of hikes at that risk of embedding an inflation psychology in the system which would eventually require a much more damaging policy response. Westpac retains its terminal rate forecast of 3.85% but now extends the length of the tightening cycle to May as inflation becomes more entrenched in the near term.”

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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