The Commonwealth Bank of Australia (CBA) retains their call for "the RBA to commence raising the cash rate on June 22,” following the release of the Australian Wage Price Index (WPI) on Wednesday.

Key quotes

“Whilst today's (WPI) data wasn't as strong as we forecast, we expect a red hot Q122 CPI that will take the underlying rate of inflation to ~3.4% (4.5% on a six-month annualised basis). “

“Inflation data in line with our forecast as well as a strong Q122 WPI and an unemployment rate that is expected to have a 3handle on it should be sufficient evidence for the RBA to conclude, “inflation is sustainably in the target range" at the June Board meeting. “

“As such, it will be appropriate to start a tightening cycle.”