RBA expected to hike by 25 bps – UOB

Economist at UOB Group Lee Sue Ann sees the RBA raising the OCR by 25 bps at its meeting on July 4.

Key Quotes

We continue to emphasize that every meeting in the near term will be live. Following the latest employment data, we are now penciling in a 25bps hike at the next monetary policy meeting on 4 Jul.

Employment strength has been a key factor in the RBA’s confidence that Australia can avoid a recession. The latest job figures showed that annual jobs growth rose to 3.4%, from 3.1% at the start of the year.