Westpac shift their 'lift off' RBA rate hike to June (from August)

Westpac had been forecasting a first Reserve Bank of Australia rate hike in August of 2022 but have pulled that call forward now to June 2022.

This is in response to the pivot to more hawkish in the statement from RBA Governor Lowe on Tuesday this week.

This change of call from WPAC is hardly surprising. WPAC had expressed surprise at the shift from Lowe in their response to the statement earlier this week. WPAC join other analysts calling for a June hike.

• Reflecting the changed policy stance from the RBA we now expect a sequence of rate hikes reaching 1.25% by year end.
• Hikes will resume in 2023 as wages growth & very tight labour market signal the need for higher rates.

WPAC forecasts for the balance of this year:

• +0.15% in June
• then +0.25% in July, August, October and November

Then 25bp hikes in 2023 in February, May and June.

The next meetings coming up from the RBA are on:

• May 3
• June 7

eur EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term