ANZ on what they expect from the Reserve Bank of Australia next week (in brief):

  • The RBA has published its estimate of the change in average hourly earnings from the Q1 GDP data as 5.2% y/y.
  • This is in line with the estimate we published ...
  • We think this provides the "very strong argument" the RBA needs to go by 40bp on Tuesday.

RBA policy announcement is scheduled for June 7 at 0430 GMT.

RBA