Strategists expect the Reserve Bank of Australia to lift rates further despite hesitation signaled in the May policy statement.
TD Securities strategists maintain their forecast for the Reserve Bank of Australia to raise the cash rate to 4.60% in this cycle. The projection follows the RBA’s May policy statement, which indicated reluctance to hike in June but left room for future adjustments.
The strategists anticipate the upcoming RBA minutes will provide clarity on the central bank’s stance. Markets have priced in a more cautious approach, but persistent inflation or economic data could shift expectations. The current cash rate stands at 4.35% after the last hike in November 2023.
No immediate market reaction was specified, though traders may adjust positions ahead of the minutes release.