Standard Chartered expects the RBA to hike rates to 4.85% in Q4 following strong inflation data, with the first potential rate cut delayed until Q3 2027.
Standard Chartered projects a hawkish shift from the Reserve Bank of Australia, anticipating a rate hike to 4.85% in Q4, specifically targeting November 3rd. This forecast is driven by Q3 underlying inflation data that exceeded initial projections, providing a fundamental bullish catalyst for the Australian Dollar against the USD.
The bank forecasts the first rate cut to occur in Q3 2027.
Standard Chartered expects the cash rate to reach 4.85% in Q4.
Standard Chartered projects the Reserve Bank of Australia will lift the cash rate to 4.85% by the fourth quarter, citing persistent underlying inflation. The firm anticipates the first rate cut will not occur until the third quarter of 2027, highlighting a hawkish outlook for the Aussie dollar.
The prediction is driven by stronger-than-projected underlying inflation data for the third quarter, necessitating further tightening.
Standard Chartered currently anticipates the first rate cut will occur in the third quarter of 2027.