Overview
- The Reserve Bank, which decides Tuesday, is widely expected to lift the cash rate by 0.25 percentage points to 4.35%, the benchmark rate banks use to price loans.
- Market odds put the chance of a rise at about three in four, which would lift mortgage repayments for many variable-rate borrowers.
- Board members were split in March and analysts expect another tight vote as signs of weaker spending and softer housing counter the case to tighten.
- A jump in fuel costs tied to the Iran conflict is pushing up transport and business expenses, raising the risk that higher prices spread beyond petrol.
- Fresh RBA forecasts released with the decision will steer expectations, with Westpac tipping more hikes but ANZ, NAB, Commonwealth Bank, Deutsche Bank and HSBC pointing to a pause after May.