The RBA is widely expected to hike cash rate by 50bp tomorrow, again in September.
NAB preview the meeting (tthis is in brief):
- The RBA meets on Tuesday and is expected to deliver another 50bp hike , taking the cash rate to 1.85% and its highest since April 2016.
- A 50bp hike is the overwhelming consensus (22 of 23 analysts surveyed) and 47bp is currently priced by markets.
- The possibility of a larger hike of >50bps though cannot be entirely ruled out.
NAB add a heads up to the RBA's Statement on Monetary Policy due Friday (August 5):
- A full forecast update comes Friday in the August SoMP. The RBA will have to lift its inflation profile and lower its near-term unemployment projection with the focus on whether the forecasts show a credible path back to at target inflation.
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Earlier:
- Westpac sharply boost their terminal RBA cash rate forecast to 3.35% from 2.6%
- Deutsche Bank and Goldman Sachs also revising their outside bets to a 50bps hike in August from their prior views of 75bps.
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