June 2023

Overview Fears around the US banking sector have eased since mid-May, with central banks’ focus returning to inflation (around 6.3% yoy in April) that remains well above target ranges. The ECB hiked in June, and while the US Fed paused, both banks are likely to increase rates in July. While...

Keypoints Following the RBA’s decision to lift rates to 4.1% at the June meeting, we upped our rate call to 4.35% by August. We are now tentatively adding an additional 25bp increase, taking the cash rate to 4.6%. Timing is less certain, and we pencil in 25bp increases for July...