-
NAB Monetary Policy Update – 8 March 2022
We now see the first RBA rate rise occurring in August (15bps) with further increases in September (25bps) and November (25bps) with the corridor left unchanged (with the ES rate kept at 10bps below the target). This will see the cash rate target back to pre-pandemic levels of 0.75% by the end of 2022. The change in our view comes alongside an upgrade to our domestic forecasts. We now see the unemployment rate below 4% by March – well ahead of RBA expectations – and around 3.5% in the second half of 2022. We also expect higher quarterly trimmed-mean inflation of around 1% in Q1 and Q2 (still with some upside ... (full story)