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Westpac Delays RBA “Takeoff” Rate Hike to June (from August)


Westpac had forecast a first rate hike from the Reserve Bank of Australia in August 2022, but has postponed that call now until June 2022.

This is in response to the pivot to more hawkishness in RBA Governor Lowe’s statement on Tuesday this week.

This change in WPAC’s name is hardly surprising. WPAC had expressed surprise at Lowe’s change in its response to the statement earlier this week. WPAC joins other analysts calling for a hike in June.

  • Reflecting the RBA’s shift in stance, we now expect a sequence of rate hikes reaching 1.25% by the end of the year.
  • Rises will resume in 2023 as rising wages and a very tight labor market signal the need for higher rates.

WPAC predictions for the rest of this year:

  • +0.15% in June
  • then +0.25% in July, August, October and November

Then increases of 25 basis points in 2023 in February, May and June.

Upcoming RBA meetings are as follows:

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The Euro (EUR) is the official currency of the European Union (EU) and 19 of the 27 member states at the time of writing. It is the second most traded currency in the world on the foreign exchange markets after the US dollar. The euro was initially introduced on January 1, 1999, after replacing the European currency unit. Euro banknotes and physical coins only entered circulation in 2002. Upon adoption, the euro replaced national currencies in participating EU member states. Its rise in value since then and its prominence in the global market have helped cement its status as one of the most important currencies in the forex market today. Along with the USD, the currency pair is easily among the most important for forex, given its exposure to the two major economic blocs. What factors affect the euro? Several factors affect the euro. Like most currencies, monetary policy is the most influential, which in this case refers to the European Central Bank (ECB). The ECB is responsible for regulating monetary policy, the money supply, interest rates and the relative strength of the euro. Euro traders are regularly on the lookout for any ECB decision or announcement for this reason. With 19 sovereign member states, the euro is particularly vulnerable to political developments. Recent examples include the Greek debt crisis and Brexit, among others, which can have a serious impact on the Euro. Finally, economic data from the bloc or from key member states such as Germany, France, Spain and others are also closely watched. This includes retail sales, unemployment claims, gross domestic product (GDP) and others.

The Euro (EUR) is the official currency of the European Union (EU) and 19 of the 27 member states at the time of writing. It is the second most traded currency in the world on the foreign exchange markets after the US dollar. The euro was initially introduced on January 1, 1999, after replacing the European currency unit. Euro banknotes and physical coins only entered circulation in 2002. Upon adoption, the euro replaced national currencies in participating EU member states. Its rise in value since then and its prominence in the global market have helped cement its status as one of the most important currencies in the forex market today. Along with the USD, the currency pair is easily among the most important for forex, given its exposure to the two major economic blocs. What factors affect the euro? Several factors affect the euro. Like most currencies, monetary policy is the most influential, which in this case refers to the European Central Bank (ECB). The ECB is responsible for regulating monetary policy, the money supply, interest rates and the relative strength of the euro. Euro traders are regularly on the lookout for any ECB decision or announcement for this reason. With 19 sovereign member states, the euro is particularly vulnerable to political developments. Recent examples include the Greek debt crisis and Brexit, among others, which can have a serious impact on the Euro. Finally, economic data from the bloc or from key member states such as Germany, France, Spain and others are also closely watched. This includes retail sales, unemployment claims, gross domestic product (GDP) and others.
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