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Australia Set for First Ever Back-to-Back Half-Point Rate Hike

  • Of 26 polled, 25 see RBA raising cash rate by 50 bps to 1.35%
  • Median of economists’ forecasts shows rate at 2.5% by end-2022

Australia’s central bank is set for back-to-back half-percentage point interest rate hikes for the first time ever as it beefs up efforts to rein in escalating inflation, according to a Bloomberg survey of economists.

Of 26 respondents, 25 expect the Reserve Bank of Australia to raise its cash rate to 1.35% on July 5 from 0.85% now. That will follow a larger-than-forecast half-point hike last month and take benchmark policy to the highest since May 2019. Market Economics is alone in calling for a bigger 0.75% move.