CE analysts forecast an RBA 25bp interest rate hike at its next meeting, May 7

Capital Economics are forecasting a Reserve Bank of Australia rate hike on May 7. In brief:

• The case for the RBA to tighten policy is growing increasingly compelling. Underlying inflation is all but certain to overshoot its current forecast.
• Services inflation, which has long been a concern for the Bank, is also proving to be quite persistent.
• Meanwhile, the labour market has largely stopped loosening and green shoots are starting to emerge in the economy.
• As a result, we now expect the RBA to hike rates by another 25bp when it meets

This is the only rate hike call I have seen (there could be those I haven’t seen though).

• Westpac – Australia- inflation a bit higher than expected, RBA on hold
• ANZ sticks to their forecast for a November 2024 interest rate cut from the RBA

This article was written by Eamonn Sheridan at www.forexlive.com.