We have chosen 40 basis points rather than 50 basis points purely because we expect that ‘business as usual’ is increments of 25 basis points. Apart from that large hike of 40 basis points in June to return the cash rate to 75 basis points we continue to expect the rate path we forecast before. That is increases of 25 basis points in July; August; October and November with the rate reaching 175 basis points by year’s end instead of our previous 150 basis points. - Westpac Economist
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