Central Banks
Australia to Raise Key Rate 40-Basis Points in October, IFM Says
- RBA will pause at 3% in November, chief economist Joiner says
- Joiner then sees RBA switching to gentle easing late next year
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Australia’s central bank will raise interest rates by 40 basis points next month and conclude its tightening cycle at 3% in November as it diverges from global peers, says Alex Joiner, chief economist at IFM Investors.
His forecast is more aggressive than the quarter percentage-point hike predicted by most economists at the Reserve Bank’s Oct. 4 meeting. Yet it remains in line with Governor Philip Lowe’s signal that the RBA may scale back the size of future increases following four consecutive half-point hikes.