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Market Chatter: Economists Expect Australia's Central Bank to Raise Cash Rate by 25 Basis Points in May, Reuters Poll Suggests

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-- The Reserve Bank of Australia is expected to increase its cash rate to 4.35% at its May 5 policy meeting, which would mark the third consecutive hike of 25 basis points, according to a Reuters poll of economists published Friday.

More than a third of the economists surveyed now expect the rate to hit at least 4.6% within the year, compared with none in a survey conducted in March, Reuters reported.

The central bank started raising borrowing costs in early February after inflation stayed above its 2% to 3% ​target range since the middle of 2025.

If it increases the rate again on May 5, the move would fully reverse rate cuts made last year, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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