Citi: The window for the next RBA rate hike is expected to move from June to August

News on May 18, Australia’s April employment report was unexpectedly poor, with the unemployment rate rising to 3.7% from 3.5% in March.

Citi economist Faraz Syed said that while a month does not represent a trend, it does give the RBA the option to pause rate hikes in June and July. Still, hawkish risks around wages and inflation remain. As a result, Citi still expects the RBA to raise interest rates by another 25 basis points, but the timing of the hike will be delayed from June to August.