RBA expected to hike rates by 25 bps this week – UOB

Economist at UOB Group Lee Sue Ann suggests the RBA could raise the OCR by 25 bps at its meeting on October 4.

Key Quotes

“After having raised rates by 2.25ppts since May, the OCR is now approaching a neutral rate, allowing the RBA to return to smaller moves.”

“We have thus penciled in 25bps hikes for the remaining three meetings in 2022. Our call for shallower rate hikes is also largely due to a slowdown in the economy towards year-end, as the post-lockdown bounce in activity wanes.”