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- Former RBA Edwards: RBA could raise interest rates four times in quick succession late in 2022
Former RBA Edwards: RBA could raise interest rates four times in quick succession late in 2022
Economist John Edwards, who once sat on the policy-setting board of the Reserve Bank of Australia said in an interview earlier today that the RBA could raise interest rates four times in quick succession late in 2022.
Edwards, who is given plenty of press time when it comes to his insights into the RBA's thinking, explained that given the current upward trajectory of the economy, slow and incremental hikes could be on the table considering that ''there is no point in one increase.'' If this were the case, this implies a cash rate of 1% by the end of the year.
Mr. Edwards warns that the cautious plod of the RBA could end quickly.
However, the RBA doesn’t expect growth in the Wage Price Index to reach 3% until mid-2023, and as such, the market has concluded that there will be no immanant hawkish from the bank which leaves the currency on the back foot.
''We think the RBA’s wages outlook is too pessimistic which lies behind our expectation that the RBA will begin raising the cash rate in the second half of 2022,'' analysts at ANZ Bank recently argued. Westpac’s view remains for the RBA to raise the cash rate to 0.25% in August and to 0.50% in October.
As for AUD/USD, it is continuing with its hourly advance on the session, printing fresh highs of 0.7137.
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