Australia: RBA expected to raise the OCR by 25 bps – UOB

Lee Sue Ann, Economist at UOB Group, sees the RBA raising the OCR by 25 bps at its event next week.

Key Takeaways

“Both consumer and business confidence have softened under the weight of high inflation and rising interest rates. This is why we think the RBA will soon pause in the current rate hiking cycle.”

“We are penciling in another 25bps hike at the final monetary policy meeting of the year on 6 Dec, which will take the OCR to 3.10%. Thereafter, we look for a hold.”