Citi economists say that after the Reserve Bank of Australia's recent unanimous
hawkish hike, the bank is likely to raise rates again in November. The call
reflects persistent inf and realized upside risks, including firms passing cost
pressures into goods and services. Citi notes the RBA tightened despite cooling
housing activity, signaling a bias toward fighting inf rather than supporting
the labor market. Citi retains November as the preferred timing for a 25bps move
and projects a terminal cash rate of 4.85%.
