ANZ were previously forecasting a 25bp hike in December but have dragged it forward to November.
- +25bp on November 7
- to take the cash rate to 4.35% from its current 4.1%
ANZ, in brief:
- Given the RBA's hawkish rhetoric over the past two weeks and an uncomfortably high Q3 CPI (1.2% q/q for both headline and trimmed mean), we now expect the RBA to increase the cash rate by 25bp in November to 4.35%.
- Thereafter we expect a hawkish extended pause.
In response to:
- Australian Q3 2023 Headline CPI +1.2% q/q (vs. 1.1% expected)
- AUD/USD jumped higher on Australian inflation data, November 7 rate hike is likely now.
I concur:
AUD/USD update:
