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📝RBA Hiking Cash Rate By 50Bps In June And July: Goldman Sachs

We expect the RBA to maintain the policy rate at 2.60% beyond 2022 -- broadly in line with our estimate of ‘neutral’ (2.50%). While this represents a very rapid policy tightening over the coming year, our recent analysis suggests the Australian economy will be able to absorb materially higher interest rates in the near-term -- although we see longer-term risks around the residential housing market. - Goldman Sachs Economist



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