Lee Sue Ann, Economist at UOB Group, suggests the RBA would hike the OCR by 25 bps at the June 7 meeting.

Key Quotes

“We recognise that a 40bps hike at this meeting is a close call, but this is not our base case. We see the RBA hiking by 25bps to 0.60% in Jun, and for now, another 65bps in the remainder of 2022, which would bring the OCR to 1.25% by year-end.”

“Further out, we look for the OCR to rise over 2023 and 2024, reaching 2.50% by the end of our forecast period.”