Goldman Sachs said the lift to household incomes as a result of the budget (released Tuesday in Australia) is incrementally hawkish:

  • forecasts another Reserve Bank of Australia rate hike in July and warns there are further to come after that
  • “At a time when the RBA is lifting rates to contain elevated inflation and accelerating labour costs, we assess the budget’s near-term boost to household incomes to have an incrementally hawkish read-through for monetary policy,”
  • “Especially given surging migration-led population growth and the recent strong rebound in house prices, we see a firming case for further policy tightening by the RBA over the coming months.”
rba june policy meetg 2023

The next RBA meeting is June 6, Governor Lowe speaks the next day.