Rate Hike in the Cards?

Bank of America Global Research discusses its expectations for the RBA April central bank policy meeting on Tuesday.

"The Reserve Bank of Australia (RBA) meets on Tuesday, 4 April. Consensus is looking for a pause: 16 out of 27 analysts surveyed by Bloomberg expect no change, while markets are only pricing in 3.5bp of hikes. However, we stick to our view for another "dovish" 25bp hike, taking the cash rate to 3.85%, and think the decision is a closer call than implied by market pricing," BofA notes.

"At its last policy meeting in March, the RBA signaled that it was nearing the end of the hiking cycle: its guidance for the policy rate implied that the RBA was expecting at least one more hike as the base case," BofA adds.

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