On March 24, Warren Hogan, chief economic advisor at Australia’s digital bank Judo Bank, said the RBA should stick to its plan and only announce a pause in rate hikes when the official cash rate (OCR) rises to 3.85% from the current 3.60%.
With other central banks continuing to raise interest rates, it is difficult to see how the RBA could explain the financial instability of the past few weeks as a reason to change its rate hike plans.
Therefore, the RBA is expected to raise interest rates again in April. The RBA will have to raise the OCR to a level officials really think they can sit back and watch for a few months before pausing rate hikes.