The Reserve Bank of Australia has released the minutes from its recent monetary policy meeting, which indicate that it expects to make several more rate rises this year.
Earlier this month, the RBA increased the cash rate from 0.15% to 0.35% (see graph), to help subdue underlying inflation, which is now higher than the RBA’s target range of 2-3%.
According to the minutes, the RBA expects underlying inflation to return to the target range by mid-2024 – but these forecasts are “based on a technical assumption of the cash rate increasing to around 1.75% by the end of 2022 and around 2.5% by the end of 2023”.
As a result, there’s a reasonable chance the RBA will increase the cash rate by either 0.25 percentage points or 0.40 percentage points at its next meeting, on June 7. #property #realestate #homeloans