An interesting survey result from Reuters. While markets are pricing in a hike from May analysts polled are looking for much later:
- Economists canvassed in a Reuters Jan 18-25 poll also brought forward their rate hike expectations for third month in a row.
- Most of the 34 respondents, however, expect the RBA to take more time, with a median forecast for a 15 basis-point move in November.
- Two economists expect a rate rise already in the second quarter, seven in the third quarter, 11 in the fourth quarter and 13 still see the central bank first pulling the trigger next year.
- Economists were less divided on when the central bank will pull the plug on its bond-buying programme, with 17 out 22 of those who answered the question expecting an announcement at the next policy meeting on Feb. 1. Five others saw the central bank ending the programme launched in response to the coronavirus pandemic in May.
Here is the link to the Reuters report on its poll for further info.
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Next week is a busy one from the RBA:
