Analyst says the RBA cash rate has peaked at 4.1%, from prior forecast of 4.85%.

<p>TD analysts are forecasting the Reserve Bank of Australia have reached the peak of the cash rate. </p><p>The analysts concede there is still the possibility of a November rate hike:</p><ul><li>Should the labour market remain firm and there is evidence that higher labour costs are being passed through</li></ul><p>And add further cash rate upside risks come from higher property prices supporting consumption (through the wealth channel) and higher oil prices.
</p><p>TD concludes with the implications of the terminal rate having been reached:</p><ul><li>Given our view the RBA cash rate peaks earlier and lower than our prior 4.85% forecast, the RBA is therefore expected to keep the cash rate on hold for longer. </li><li>We now push out rate cuts from Q2 2024 to Q3 2024. </li></ul><p>The Reserve Bank of Australia's cash rate is at 4.1. The next meeting is September 5. </p>

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