FOREX TradingCharts.com

Financial News: RBA To Raise Cash Rate In November 2022:

RBA To Raise Cash Rate In November 2022: Commonwealth Bank

06/23/2021 - 06:06:00 (RTTNews)

(RTTNews) - The Reserve Bank of Australia is set to hike its cash rate in November 2022, which is earlier than its current guidance of "2024 at the earliest", economists at the Commonwealth Bank of Australia said Wednesday. "We have penciled in an increase of 15 basis points which would take the cash rate to 0.25 percent," Gareth Aird, head of Australian economics at CBA, said in a research note. The bank expects that to be followed by an increase of 25 basis points in December 2022.

The CBA economists also expect three further 25-basis point hikes in the first, second and third quarters of 2023. That would take the cash rate to 1.25 percent, the level at which the bank assess the cash rate to be neutral. The two key assumptions that underpin the bank's RBA call are the continuation of the expansionary fiscal policy over the next few years and an increase in the net overseas immigration from mid-2022, but at a slower rate than pre-Covid. "The forward looking indicators of labor demand are very strong yet labor supply is constrained, which means the labor market will continue to tighten very quickly and wages growth will accelerate," Aird said.

"The Commonwealth fiscal stance as well as the targeted level of net overseas immigration in 2022/23 will have a large bearing on nominal wage outcomes and therefore the path of interest rates."

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


New Zealand Unemployment Data Due On Wednesday (40 min(s), 50 sec(s) ago)
(RTTNews) - New Zealand will on Wednesday release Q2 figures for unemployment, highlighting a mode ...Full Story»

Swiss Consumer Confidence Improves Strongly To 11-year High (06 hr(s), 37 min(s), 50 sec(s) ago)
(RTTNews) - Switzerland's consumer confidence rose sharply in July to its highest level in ove ...Full Story»

U.S. Factory Orders Jump More Than Expected In June (08 hr(s), 07 min(s), 50 sec(s) ago)
(RTTNews) - Partly reflecting a sharp increase in orders for non-durable goods, the Commerce Depar ...Full Story»

UAE Non-Oil Private Sector Growth At 2-Year High (11 hr(s), 10 min(s), 50 sec(s) ago)
(RTTNews) - The UAE non-oil private sector growth was the fastest in two years in July, survey res ...Full Story»

Egypt Non-Oil Private Sector Declines In July (11 hr(s), 12 min(s), 50 sec(s) ago)
(RTTNews) - Egypt's non-oil private sector activity contracted at a softer pace in July, surve ...Full Story»

Saudi Arabia Non-Oil Private Sector Growth Eases In July (11 hr(s), 11 min(s), 50 sec(s) ago)
(RTTNews) - Saudi Arabia's non-oil private sector grew at a softer pace in July, survey result ...Full Story»

Latvia Industrial Production Increases In June (12 hr(s), 19 min(s), 50 sec(s) ago)
(RTTNews) - Latvia's industrial production increased in June, data from the Central Statistica ...Full Story»

Eurozone Producer Price Inflation Accelerates In June (12 hr(s), 37 min(s), 50 sec(s) ago)
(RTTNews) - Eurozone producer price inflation accelerated in June on higher energy prices, data fr ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

New Zealand Unemployment Data Due On Wednesday

08/03/2021 - 18:00 PM (RTTNews)
(RTTNews) - New Zealand will on Wednesday release Q2 figures for unemployment, highlighting a mode ...Full Story>>

Swiss Consumer Confidence Improves Strongly To 11-year High

08/03/2021 - 12:03 PM (RTTNews)
(RTTNews) - Switzerland's consumer confidence rose sharply in July to its highest level in ove ...Full Story>>

U.S. Factory Orders Jump More Than Expected In June

08/03/2021 - 10:33 AM (RTTNews)
(RTTNews) - Partly reflecting a sharp increase in orders for non-durable goods, the Commerce Depar ...Full Story>>

UAE Non-Oil Private Sector Growth At 2-Year High

08/03/2021 - 07:30 AM (RTTNews)
(RTTNews) - The UAE non-oil private sector growth was the fastest in two years in July, survey res ...Full Story>>

Saudi Arabia Non-Oil Private Sector Growth Eases In July

08/03/2021 - 07:29 AM (RTTNews)
(RTTNews) - Saudi Arabia's non-oil private sector grew at a softer pace in July, survey result ...Full Story>>

Do not sell my personal information

Copyright © 2021. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.