The balance of risks to the RBA’s monetary policy has shifted significantly since the board last met in December. It is no longer a case of whether they have to go another 25bp or 50bp – it looks like the cash rate will need to rise by somewhere between 100bp and 150bp before this cycle is done.

Inflation is more broad-based than previously thought. The domestic economy is holding up to the initial wave of rate hikes, but most importantly, the global economic outlook has brightened.