Westpac also ups RBA cash rate forecast to 2.1% by Dec (from 1.75%)

By Sophia Rodrigues

Published On 07 Jun 2022 , 05:21 PM

Westpac chief economist Bill Evans has raised his forecast for RBA cash rate, now expecting the policy rate to end 2022 at 2.10% versus previous forecast for 1.75%.

Evans expects RBA to hike 50bps in July, followed by 25bps in August, and then two more 25bps hikes in November and December.

The forecast for terminal rate is 2.35% with a final 25bps hike in February 2023.

Evans says the RBA statement clearly signals that it now "recognises that it has a significant challenge to contain inflation and today’s decision points to it now being prepared to act decisively. For that reason, we expect that the next move in July will also be a 50 basis point increase."

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