Westpac Economist Predicts RBA Rate Hikes in August and September

Westpac's Chief Economist, Lucy Ellis, stated on May 8 that the Reserve Bank of Australia (RBA) is still expected to raise interest rates twice more, although it is now anticipated to hold rates steady in June. According to Jin10, the RBA has characterized its three rate hikes this year as a response to inflationary pressures that existed prior to the Iran war. The bank now has 'space' to consider its next steps. Westpac currently forecasts that the RBA will increase rates in August and September, as it will recognize that its efforts to counteract the transmission effects of rising gasoline prices to curb inflation have been insufficient.