Goldman Sachs expects the RBA’s future interest rate peak to reach 4.85%(June 7)

On June 7th, Andrew Boak, chief economist for Australia and New Zealand at Goldman Sachs, said that the speech of RBA Chairman Lowe on Wednesday sent a “turning eagle” signal. “With today’s data showing an unexpected acceleration in unit labor costs (+7.9% year-on-year), we now expect the RBA to raise interest rates by 25bps in July, August and September (previously forecast 25bps in July ), the peak interest rate will reach 4.85% (previously forecasted to be 4.35%). We believe that the risk is biased towards a prolonged tightening cycle, such as maintaining a slow pace of interest rate hikes in the second half of the year.”