Westpac chief economist Bill Evans with the early projection:
- “We think the RBA will have to lift the (cash) rate by another 50 basis points in July”
The Reserve Bank of Australia raised the cash rate in May and again earlier this week at the June meeting. The consensus call was for a 25bp rate hike at this week's meeting but Westpac was forecasting higher, at 40bps. The rate rise was 50bp. Westpac tipping another 50 at the next meeting.
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Meanwhile, AUD/USD update. Its soft on the session. Some of the COVID news out of China is not encouraging:
- China media: "Shanghai Heightens Covid Restrictions After a Spike in Cases Sparks Concern"
- Another district in Shanghai to be locked down - for mass COVID testing
Separately:
