The Reserve Bank of Australia today is due at 7.30pm US Eastern time. A 25bp rate hike is widely expected:
- RBA Preview: Not out of the woods yet - BofA
- The RBA expected to raise its cash rate again on Tuesday, Gov Lowe speaks the next day.
- AUD traders heads up: RBA 'shadow board' recommends a 25bp cash rate hike on Tuesday 7 Feb
I also posted a preview earlier where NAB raised the issue of the importance pof the language used in Reserve Bank of Australia Governor Lowe's accompanying statement to the rate hike announcement:
Nomura are similar:
We expect the RBA governor’s press release to:
- announce a 25 bps hike
- contain mixed macro comments
- and provide less hawkish forward guidance
TD also:
- The focus will be on whether the RBA softens its language in light of recent weaker data
- On the back of the widening breadth and persistence of inflation, the cash rate in Australia remaining below comparable G10 economies, and the Australian economy more likely to benefit from China's reopening, we expect the RBA to push on with hikes in April and May
That Cash rate target is expected to be 3.6% very soon indeed.
