UBS expects the Reserve Bank of Australia to raise interest rates twice more, bringing the rate to 4.60%.

UBS released a report stating that the Reserve Bank of Australia is expected to raise interest rates two more times, reaching a new high of 4.60% by the end of August. It is predicted that there will be a 25 basis point rate hike in May, followed by another 25 basis point increase in August, with the possibility of an earlier hike in June not being ruled out. The impact of rising inflation on the economy and labor market may be non-linear. UBS predicts that the hawkish stance of the Reserve Bank of Australia will weaken, taking into account inflation targets and maintaining full employment, especially in a tightening financial environment.