Interesting day ahead tomorrow with the US market heavy RED and interest rate expected tuesday.
Economists expect an increase this month of a least another 25 basis points, or perhaps even 40 or 50 basis points this time around.
AMP chief economists said a larger increase cannot be ruled out after the central bank said it had considered a 40 basis-point increase at the last board meeting. Instead it opted for a 'business as usual' 25 basis-point increase.
He argues that since the May meeting, inflation pressures have mounted, with petrol, power prices and rents increasing.
'RBA concerns about rising inflation psychology are likely to have increased, arguing for a step up in the pace of tightening in June in order to get on top of inflation,' he said.
