TREE NEWS reports: UBS now expects the Reserve Bank of Australia to raise interest rates two more times, by 25 basis points each, bringing the cash rate to 4.85%. The forecast points to a higher terminal rate than previously anticipated for Australian monetary policy.
UBS Expects RBA to Raise Rates Twice More to 4.85%
UBS's revised call signals that market participants may still be underestimating the RBA's tightening path, a shift that ripples through Australian rate expectations and the currency. The forecast affects borrowers, savers, and anyone with exposure to Australian assets, as a higher terminal rate alters the discount rate applied across valuations. Whether other forecasters follow UBS in lifting their terminal rate views is the next signal to watch.
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