RBA hikes rates - are we there yet?

 

Please click here to view Shane Oliver's views on the recent interest rate rise, and whether we are near the end of further rises.  

Key points raised are:

  • The RBA hiked rates again by 0.25% taking the cash rate to 3.35%, stating that they expect to increase interest rates further
  • We remain of the view the cash rate is near the top as
    • rate hikes impact with a lag
    • inflationary pressures are easing globally and showing signs of easing here too
    • the sharp rise in household interest payments will weigh on spending  and
    • there is increasing evidence rate hikes are getting traction
  • But given the RBA's more hawkish tone we are allowing for one more 0.25% hike in March followed by a pause ahead of the start of the rate cuts late this year or early next year.