ANZ was forecasting a peak rate at 4.35% but have revised that forecast to 4.1%. ANZ say that instead of another hike the RBA will hold the cash rate at 4.1% for longer.
ANZ:
- While it’s possible the Reserve Bank could hike in August, on balance we think an extended pause at 4.1% is now most likely.
- This change in view from us is unrelated to any decision regarding the RBA governor.
- Rather it reflects an assessment of the economy based on a deterioration in forward-looking labour market indicators, good news on the global inflation front and increasing anecdotal evidence (including our own spending data) that the most recent rate hikes have had an impact on consumer behaviour.
This article was written by Eamonn Sheridan at www.forexlive.com. Source