CE analysts expect the RBA to hike interest rates by 25 basis points at its next meeting on May 7.

Capital Economics predicts a rate hike from the Reserve Bank of Australia on May 7.

• The case for policy tightening by the RBA is becoming increasingly compelling. It is almost certain that core inflation will exceed current forecasts.
• Services inflation, which has long concerned the Bank, is also proving to be quite persistent.
• At the same time, the labor market has largely stopped easing and green shoots are starting to appear in the economy.
• As a result, we now expect the RBA to raise rates by a further 25 basis points when it meets.

This is the only call for a rate hike I’ve seen (there may be others I haven’t seen, though).

• Westpac – Australia – inflation a little higher than expected, RBA on hold
• ANZ sticks to its forecast of an RBA interest rate cut in November 2024

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

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