Capital Economics are forecasting a Reserve Bank of Australia rate hike on May 7. In brief:

  • The case for the RBA to tighten policy is growing increasingly compelling. Underlying inflation is all but certain to overshoot its current forecast.
  • Services inflation, which has long been a concern for the Bank, is also proving to be quite persistent.
  • Meanwhile, the labour market has largely stopped loosening and green shoots are starting to emerge in the economy.
  • As a result, we now expect the RBA to hike rates by another 25bp when it meets

This is the only rate hike call I have seen (there could be those I haven't seen though).

rba may meting statement 2024 2