Strong average earnings in the first three months of 2022 could prompt the Reserve Bank of Australia to increase interest rates higher than expected at its June board meeting, according to ANZ economists.
,” ANZ senior economist Felicity Emmett said. “Anything above 4 per cent year-on-year would represent a significant acceleration. Strong prices also led to a 25.3 per cent growth in mining gross operating profits over the quarter, taking profits to almost 50 per cent above a year ago. Australia’s account surplus narrowed significantly to $7.5 billion between January and March, lower than the market consensus of $13.2 billion, and down from a peak of $22.4 billion in the June quarter last year.
RBA should be doing 50 basis points in June they need to catch up, waited too long.
Makes sense, the RBA should definitely be hiking strongly at this point.