CommBank Global Economic & Markets Update podcast

RBA to raise the cash rate in November 2022

June 23, 2021

The Australian labour market has tightened at a phenomenal pace and underutilisation in May was at its lowest since early 2013. The forward looking indicators of labour demand are very strong yet labour supply is constrained, which means the labour market will continue to tighten very quickly and wages growth will accelerate.  We expect the RBA to begin normalising monetary policy in late 2022 and see the cash rate target at 0.5% at end-2022 and then peaking at 1.25% by Q3 2023.  In this podcast Gareth Aird, Head of Australian Economics and Belinda Allen, Senior Economist discuss the change of call, the reasons why and the risks around it.

 

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