Australia: RBA predicted to hike the OCR by 25 bps – UOB

Economist at UOB Group Lee Sue Ann suggests the RBA could raise the policy rate by 25 bps at its event on April 4.

Key Takeaways

“At this juncture, we are keeping our view of one more 25bps hike in Apr, which will take the cash rate target to 3.85%. There is some near-term downside risk to this view as uncertainty remains elevated.”

“This is highlighted by the recent problems in the banking sectors in the US and Europe, with potential spill overs for Australia via lending conditions and confidence.”