According to a Reuters poll of 32 economists, the Reserve Bank of Australia (RBA) is expected to raise its official cash rate (OCR) by 15 basis points to 0.25% from a record low of 0.10% at its May 3 meeting.

Key takeaways

“Half of 32 economists forecast a rise in the cash rate to 0.25% at the meeting and four predicted a hefty 40 basis points increase to 0.50%.”

“The remaining 12 respondents expected no change.”

“Economists in the poll also expected the RBA to pick up the tightening pace.“

“Over two-thirds of the economists - 23 of 32 - forecast the RBA would raise the cash rate to 0.50% in June; four forecasts it would move the rate up to 0.75% or higher by then.”

“Median forecasts showed the benchmark rate would rise to 1.00% by end-September and to 1.50% by year-end, double the 0.75% predicted in the previous survey.”

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