RBA To Hike In August, JP Morgan Says

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By Rudi Filapek-Vandyck

Expectations for a rate hike in Australia may have abated a little with almost nobody expecting the RBA to raise rates this month, but many economists maintain there’s still another 25 basis points hike in the offing this year.

JP Morgan economists Jarrod Kerr and Stephen Walters reiterate their view that an interest rate hike in August is now the most likely scenario.

Both economists saw their view receiving support from another solid private sector credit report.

JP Morgan notes credit growth to housing outstripped business lending for the first time in five months. Kerr and Walters believes this increases the likelihood of another RBA rate rise soon – in August.

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