While the labour market has surprised to the upside, inflation is moving broadly in line with the Bank’s expectations. We therefore expect the Bank to keep hiking rates by 50bp in August, September and October before reverting to smaller 25bp hikes. And we still expect the worsening housing downturn to prompt rate cuts next year.
Australia Drop-In (15:00 SGT, 27th July): Join our 20-minute briefing on why we think Australian inflation is heading higher than the consensus expects, how the RBA will have to raise rates by more than most appreciate to tame it, and what it all means for Aussie asset prices. Register now
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