Let's dive right into it (reminder that the cash rate is now 0.85%).
Goldman Sachs now sees the RBA hiking by 50 bps in July and ultimately reach a terminal rate of 2.60% by December. Adding that risks are skewed towards a faster pace of tightening, including a likelihood of another 50 bps rate hike in August.
Meanwhile, CBA is out with a straightforward comment that they expect the RBA to hike by another 50 bps in July.
ANZ though sees the RBA hiking by 25 bps in July and then following that up with a 50 bps rate hike in August, which is a bit of a surprising take all things considered.
NAB are more torn though as they expect the RBA to deliver rate hikes between 75 bps to 100 bps in the coming two months i.e. July and August. They see the cash rate reaching 1.60% to 1.85% and expect it to return to 2.00% by December (previous forecast was for 1.35% by year-end).
The firm adds that they see the terminal rate for the RBA being around 2.00% to 2.50%, with the market pricing now of over 3.00% being rather "excessive". They will publish a formal profile to the RBA decision tomorrow.
