Central Banks
RBA Set for One Last Outsized Hike Before Lowe Slows Tightening
- Most economists, traders see one more half-point hike Tuesday
- CBA, AMP dissent as Lowe signaled plans for policy downshift
Philip Lowe
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Australia’s central bank is trying to tame inflation without choking off economic growth, bringing economists and traders together in expecting just one more outsized interest-rate increase at Tuesday’s policy meeting.
Most economists surveyed by Bloomberg see a fifth straight half percentage-point hike by the Reserve Bank on Oct. 4 to take the cash rate to 2.85%, before opting for smaller hikes going ahead. Money markets have a similar base case. That’s the latest take on recent signals from Governor Philip Lowe that he is keen to downshift to quarter-point moves at some point.