Goldman Sachs revise their forecast for the Reserve Bank of Australia after the blockbuster jobs report earlier today:
- Given the strong outcome, we now expect the RBA to accelerate the pace of rate hikes to +75bp to 2.1% in August as our base case (previously +50bp, with 35% chance of +75bp in August).
- While a close call, we continue to expect the pace of hikes to slow to +50bp/25bp/25bp/25bp in Sep/Oct/Nov/Dec, to reach a terminal rate of 3.35% (vs 3.1% previously).
