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RBA’s central scenario may signal rate hikes soon

The RBA began shifting the stance of monetary policy this week by watering down its commitment to keep rates on hold for the foreseeable future. The Bank’s central scenario is still consistent with rates remaining on hold until 2024, but the Bank has consistently underestimated the pace of the economic rebound. The Bank will probably revise up its forecasts again in August and we think it will start to hike rates in early-2023.
Marcel Thieliant Senior Japan, Australia & New Zealand Economist
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