RBA: OCR peak now seen at 4.85% – Goldman Sachs

Dhwani Mehta FXStreet

In its latest client note, analysts at Goldman Sachs raised its terminal rate hike expectation for the Reserve Bank of Australia (RBA) after the central bank surprised markets with two consecutive rate hikes.

Key points

The bank now expects a 4.85% peak in September from 4.35% previous forecast.

They saw a hawkish shift in the RBA's reaction function during Lowe's speech earlier today.

They also noted that the Q1 GDP report showed a surprise acceleration in unit labor costs.

The bank now expects hikes in July, August and September. Previously it had expected a 25bp hike in July.

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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