Economists: Australia set for consecutive 50-point interest rate rise
The Reserve Bank of Australia raised by a larger-than-expected 50 basis points last week, taking the cash rate to 0.85%.
The RBA will raise its cash rate to 1.35% next month, according to 19 of 24 economists surveyed by Bloomberg between June 9-13.
The RBA will raise its cash rate to 1.35% next month, according to 19 of 24 economists surveyed by Bloomberg between June 9-13.
In a television interview on Tuesday night, the Reserve Bank governor Philip Lowe has warned Australians they need to be prepared for substantial interest rate rises over the rest of this year, conceding he is not sure how high they might go.
Goldman Sachs Inc., which correctly predicted last week's 50-basis-point rate increase, is among those forecasting the RBA will follow up with another half-point hike in July and keep raising the benchmark to 2.6% by year's end.
Goldman Sachs Inc., which correctly predicted last week's 50-basis-point rate increase, is among those forecasting the RBA will follow up with another half-point hike in July and keep raising the benchmark to 2.6% by year's end.
While this represents a rapid policy tightening over the coming year, our recent analysis suggests the Australian economy will be able to absorb materially higher interest rates in the near-term,"
said Andrew Boak, chief economist at Goldman in Australia.
Do you think Australia can sustain massive interest rate hikes![]()
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Do you think Australia can sustain massive interest rate hikes
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