ANZ forecasts a 25bp RBA interest rate hike on November 7 (previous forecast was December)

<p>ANZ were previously forecasting a 25bp hike in December but have dragged it forward to November. </p><ul><li>+25bp on November 7</li><li>to take the cash rate to 4.35% from its current 4.1%</li></ul><p>ANZ, in brief:</p><ul><li>Given the RBA's hawkish rhetoric over the past two weeks and an uncomfortably high Q3 CPI (1.2% q/q for both headline and trimmed mean), we now expect the RBA to increase the cash rate by 25bp in November to 4.35%. </li><li>Thereafter we expect a hawkish extended pause.</li></ul><p>In response to:</p><ul><li><a href="https://www.forexlive.com/news/australian-q3-2023-headline-cpi-12-qq-vs-11-expected-20231025/" target="_blank" data-article-link="true">Australian Q3 2023 Headline CPI +1.2% q/q (vs. 1.1% expected)</a></li><li><a href="https://www.forexlive.com/centralbank/audusd-jumped-higher-on-australian-inflation-data-november-7-rate-hike-is-likely-now-20231025/" target="_blank" data-article-link="true">AUD/USD jumped higher on Australian inflation data, November 7 rate hike is likely now.</a></li></ul><p>I concur:</p><ul><li><a href="https://www.forexlive.com/centralbank/australia-market-is-rapidly-pricing-in-a-november-rate-hike-after-surging-inflation-data-20231025/" target="_self">Australia – market is rapidly pricing in a November rate hike after surging inflation data</a></li></ul><p>AUD/USD update:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.