RBA to move to an extended pause after hiking in March and May – ANZ

The Reserve Bank of Australia (RBA) hiked its cash rate by 25 bps to 3.35%. Economists at ANZ Bank expect two more hikes in March and May.

RBA cash rate target lifts to 3.35%; hawkish statement

“The RBA delivered the expected 25 bps rate increase. This took the cash rate target to 3.35%, with the cumulative increase since May now at 325 bps.”

“Today’s RBA statement spells out that further rate hikes are coming.”

“We continue to expect that the cash rate target will rise another 25 bps in March and then to 3.85% by May 2023. We still see the risks to that peak as tilted to the high side given the momentum in inflationary pressure.”

See: AUD/USD to struggle to gain further in the short term – Commerzbank