RBA seen raising the OCR by 50 bps on Tuesday – UOB

Economist at UOB Group Lee Sue Ann expects the RBA to hike the OCR by 50 bps at its meeting on August 2.

Key Quotes

“In light of the RBA’s persistent reference to ensure that inflation in Australia returns to target over time; we now think the RBA is open to a third 50bps rise in Aug. We then look for a further 25bps increase in Nov to take the OCR to 2.10% by year-end.”

“In 2023, we are looking for a 25bps increase in Feb and a 15bps increase in May. This should take the OCR to 2.50%, with a pause thereafter, and our end-2023 forecast unchanged at 2.50%.”