Westpac sees RBA hiking again in November after 25bp move to 4.6% yesterday
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Westpac's base case that the RBA hikes again in November leaves the Australian outlook heavily tied to energy prices and the Middle East conflict, since only a lasting resolution or a sharp fall in energy-related costs is seen as likely to change it. The bank sees a much higher b
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The desk sees the RBA's recent rate hike as a signal of persistent inflation pressures, particularly influenced by geopolitical factors. Per the full note [source], the RBA raised its cash rate by 25 basis points to 4.35%, with an 8-1 vote reflecting a stronger consensus than the previous meeting. However, the dovish tone from Governor Bullock suggests that while further tightening is possible, the June meeting could see a pause. This nuanced stance is critical as it indicates a balancing act between combating inflation and acknowledging potential economic headwinds.
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