The Reserve Bank has just lifted the Official Cash Rate by 25
basis points to 3.25 per cent.
Economists were expecting another hike in the Official Cash
Rate today, but will be closely watching the Reserve Bank's
quarterly monetary policy statement for an indication of the
timing and extent of potential future moves.
The Official Cash Rate is currently 3.25 per cent, and has
now been lifted by 25 basis points in each of the last three
The statement is expected to be that the outlook for economic
growth and inflation pressures is still one which requires
the normalisation of interest rates over time - but the
financial markets have priced in more landings and fewer
steps in the staircase of rate rises ahead than the bank
projected three months ago.
Westpac chief economist Dominick Stephens said earlier this
week that wholesale interest rates had fallen to the point
where swap market pricing indicated an expectation that the
OCR will be 4 per cent by the end of next year.