- Analytics
- News and Tools
- Market News
- RBA: Expect longer and higher tightening cycle before cuts in 2024 – Goldman Sachs
RBA: Expect longer and higher tightening cycle before cuts in 2024 – Goldman Sachs
Economists at Goldman Sachs offer their outlook on the Reserve Bank of Australia's (RBA) monetary policy for the next two years.
Key quotes
"Against the backdrop of such a large and protracted inflation overshoot, we were surprised by the RBA's October decision to slow the pace of rate hikes - particularly before the policy rate had reached the lower bound of their 3.00-4.50% nominal 'neutral rate' estimate."
"Looking forward, the RBA's more frequent Board meetings (compared to peers) do provide it greater optionality, but we do not expect the RBA will risk falling too far behind a synchronized global tightening cycle."
"We also suspect that the Review of the RBA due in March 2023 will heighten pressure on the RBA to achieve its inflation mandate and make it uncomfortable for the RBA to stand pat on policy through H123 while inflation is likely be so far above-target."
“All considered, we now expect 25bp rate hikes each month to May 2023 (inclusive) - to a terminal rate of 4.10% (prior: 3.60%) - followed by 110bp of easing over 2024 to 3.0%."
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
