RBA will deliver 75bp rate hike next month

With consumer spending resilient, the labour market tightening far faster than anyone had anticipated and inflation set to surge further in Q2, we now expect the Reserve Bank of Australia to deliver a 75bp rate hike at the upcoming meeting in August. Meanwhile, the Reserve Bank of New Zealand will probably hike by another 50bp next month, but we expect the economic recovery in New Zealand to lose steam before long.

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