Australia's big four banks on RBA's 0.1% April 2024 target

By Sophia Rodrigues

Published On 27 Oct 2021 , 10:55 AM

Big four banks on the RBA's 0.1% target on April 2024 bond:

--ANZ expects the RBA to drop the target when it brings forward timing for first hike. "If the RBA's expectation about the first hike is brought forward, the target will have to change and the easiest option is to simply drop it," ANZ's David Plank wrote in a note
--CBA's head of Australia economics Gareth Aird has yet to publish his view on the April 2024 target
--NAB economists expect RBA's first hike in 2024. So based on the rate hike timing, it appears they expect no change in the 0.1% April 2024 target.
--Westpac chief economist Bill Evans says the RBA should not walk away from the target.  "That can only happen when the Bank actually raises the cash rate. At that point there will be no further responsibility to purchase the bond at 0.1%," Evans wrote in a note. For context, Westpac expects first RBA hike in 2023 March quarter.

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