AUD: RBA expected to hike rates – TD Securities

TD Securities analysts anticipate that the Reserve Bank of Australia (RBA) will raise its cash rate target by 25 basis points to 3.85%. This expectation is supported by a firmer growth outlook and signs of increasing inflation. The RBA is expected to deliver this hike without providing much guidance on future monetary policy direction.

RBA rate hike anticipated

"We expect the RBA to hike by 25bps to 3.85% (cons: 3.85%). A likely rise in the RBA's model based estimates of excess demand should see the RBA deliver the 25bps hike."

"However, we are not expecting the RBA to say much on future monetary policy direction leading markets to infer that if a hike is delivered, it is the RBA taking out insurance."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)