According to a Reuters poll, the RBA is expected to raise rates to 0.25 percent on May 3rd.

As per the Reuters poll of 32 economists, "The Reserve Bank of Australia (RBA) will likely increase its official cash rate by 15 basis points (bps) to 0.25% when compared to its record low of 0.10% at its May 3rd meeting."

April 29, 2022 - 01:15 PM 260 views

According to a Reuters poll, the RBA is expected to raise rates to 0.25 percent on May 3rd.

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© According to a Reuters poll, the RBA is expected to raise rates to 0.25 percent on May 3rd.

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As per the Reuters poll of 32 economists, "The Reserve Bank of Australia (RBA) will likely increase its official cash rate by 15 basis points (bps) to 0.25% when compared to its record low of 0.10% at its May 3rd meeting."

      Additional points

        From the 32 economists, half of them predicted an increase in the cash rate of 0.25% at the meeting, but four of them forecasted a bulky hike of 40 basis points (bps) rise to 0.50%.

      But the remaining twelve economists predicted no change in the values.

       The economists in the poll also anticipated that the RBA needed to speed up the tightening policies.

23 out of 32: It means over two-thirds of the economists predicted the RBA would increase the cash rate to 0.50% by June, but the four economists predicted that it would speed up the cash rate by 0.75% or greater than that.

By the end of September, the median forecasts displayed that the benchmark rate would increase to 1.00% and by the end of the year, it would be hiked to 1.50%. This figure is more than double the 0.75 percent predicted in the previous poll.

 

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