Economics
Australia Poised for First Rate Hike Since 2010 in Election Jolt
- Eighteen of 21 economists see May 3 rate rise; 3 see no change
- Economists predict the cash rate will reach 1.5% by year’s end
Outside the Reserve Bank of Australia (RBA) building in Sydney.
Photographer: David Gray/BloombergThis article is for subscribers only.
Australia’s central bank is expected to raise interest rates for the first time since 2010, a survey of economists showed, a decision that would catapult it to center stage of the nation’s hard-fought election campaign.
Eighteen of 21 economists predict the Reserve Bank will lift the cash rate at Tuesday’s meeting. Of those, 13 see a 15 basis point hike to 0.25% -- the same as money markets -- and five a supersized 40-basis-point boost to 0.5%. The rest -- including Commonwealth Bank of Australia -- say it will stand pat.