Australia: RBA seen raising the OCR further in November – UOB

Economist at UOB Group Lee Sue Ann suggests the RBA would keep the tightening bias well in place at the November 1 meeting.

Key Quotes

“The latest Federal Budget, unveiled on 25 Oct, displayed strong fiscal discipline, which is crucial and consistent with RBA’s efforts to curb inflation. Notably, both headline and underlying inflation for 3Q22 came in higher than expectations. But we believe inflation will likely peak in 4Q22, in the absence of further significant global shocks.”

“We are penciling in a 25bps hike in the official cash rate (OCR) to 2.85% at this meeting.