RBA: Terminal cash rate of 4.1% by May – ANZ

RBA: Terminal cash rate of 4.1% by May – ANZ RBA InterestRate Australia AUDUSD Banks

Inflationary pressures push the peak cash rate higher. According to ANZ Bank economists, a higher terminal rate of 4.1% looks likely to be required.cash rate target peaking at 4.1% in May 2023, up 25 bps from our previous peak of 3.85%.”

“Given that price pressures are intense and look to remain stronger for longer, we have lifted our 2023 inflation and wage growth forecasts and see the higher cash rate as necessary to return inflation to the top of the target band by late-2024.”Information on these pages contains forward-looking statements that involve risks and uncertainties.

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