The RBA minutes today revealed they considered both 50 and 25 basis points rate hikes at their last meeting – but no thought of holding rates. So it was not a close decision, the RBA turned more hawkish.
And more rate hikes must be expected, while inflation won’t drop into 2-3% range until 2025.
So expect more rate hikes and higher for longer, with a following fall in wealth and output. This all aligned with the Governor’s comments last week to Parliament.
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