UBS sees two more RBA hikes to 4.85% terminal rate after Bullock's comments
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This second batch of Q&A comments ( earlier ) hardens the picture from Bullock's earlier testimony , with her saying inflation risks are skewed to the upside and that persistent inflationary shocks are hard to look through, language that leaves little room to read a pause into th
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UBS expects RBA to raise rates two more times up to a terminal rate of 4.85%. - Newsquawk
RBA governor Bullock: We must get on top of inflation now before it gets away from us
The desk interprets RBA Governor Bullock's recent comments as a clear signal that the central bank is prioritizing inflation control amidst external shocks. Per the full note [source], Bullock emphasized the need for vigilance against inflation expectations, suggesting that if second-round effects from current geopolitical tensions manifest, even higher rates may be necessary. This aligns with our view that the RBA's current cash rate, described as somewhat restrictive, leaves room for further adjustments depending on economic developments. The consensus among analysts suggests a cautious approach, with a focus on upcoming data releases to gauge the inflation trajectory.
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