The Reserve Bank of Australia is expected to hike cash rate by 25bp next week

Via Reuters poll of 32 analysts ahead of the Reserve Bank of Australia November 1 meeting.

• 28 of 32 said the RBA would hike its cash rate by 25 bps to 2.85%
• the remaining four forecast a 50 bp rise

NAB comments on the higher than expected CPI rate reported earlier this week:

• “In these circumstances, the RBA will need to move monetary policy into more clearly restrictive territory to ensure inflation returns to target,”
• added that while the strength of inflation meant the board would likely debate the possibility of a 50 bp hike, “we see a 25 bp hike as being slightly more probable given recent communications”.

ANZ, CBA and NAB expect a 25 bp hike on Tuesday, while Westpac predicted a 50 bp rise.

More from the poll report:

• 30 of 32, predicted another 25 bp hike at the RBA’s December meeting
• 16 of 31 now expect rates to reach 3.60% or higher by end-June 2023, a quarter point higher than predicted in an October poll

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The RBA hiking cycle so far: