RBA seen on hold this week – UOB

Economist at UOB Group Lee Sue Ann suggests the RBA would leave the policy rate unchanged on Tuesday.

Key Quotes

“We expect the RBA to keep policy unchanged at the Apr meeting. However, the upgrade to our inflation forecasts, alongside an even tighter labour market, has led us to bring forward our RBA rate hike call.”

“We now see the cash rate target being lifted by 15 bps in Aug and then by 25 bps in Nov. This will see the cash rate target at 0.50% by the end of 2022.”