RBA: Rate hike timing questions persist – TD Securities

FXStreet Insights Team FXStreet

TD Securities strategists reiterate their view that the Reserve Bank of Australia (RBA) will likely need to raise the cash rate to 4.60% in this cycle. They note that the May policy statement suggests hesitation to hike in June, and expects the RBA minutes to clarify this. TD currently forecasts the next RBA cash rate increase in August, with a peak at 4.60%.

RBA minutes to guide hike path

"We discussed back in Feb that the RBA may ultimately need to take the cash rate to 4.60% in this cycle which looks increasingly likely."

"We forecast the next RBA cash rate hike in Aug, with the peak at 4.60%."

"It's just the timing that's the question."

"The May policy statement implies the RBA is hesitant to hike in June and the minutes may shed light on this."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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FXStreet Insights Team

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