HSBC Economists Predict Cautious Approach by Reserve Bank of Australia on Rate Hikes

HSBC economists have indicated that the Reserve Bank of Australia (RBA) is unlikely to implement consecutive interest rate hikes. According to Jin10, the bank aims to allow time to assess the impact of the recent 25 basis point increase. During a press conference, RBA Governor Philip Lowe emphasized that the board will adopt a 'cautious approach' to further rate hikes. In a report, Paul Bloxham and Jamie Culling noted that the RBA's statement was notably hawkish, and they anticipate another 25 basis point increase in the third quarter, which would raise the rate to 4.10%. Previously, the RBA decided on Tuesday to raise the cash rate by 25 basis points, bringing it to 3.85%.