Citi now sees two more RBA rate hikes this year to lift the Cash Rate to 4.85%

The notable element here is the direction of travel: a house shifting its terminal rate call higher, rather than debating the timing of cuts, signals the domestic inflation pulse is being read as persistent, and in past episodes such upgrades have clustered as economists chase the same underlying prints. Citi's call is a minority-position data point unless it is corroborated by peer revisions, which is the usual tell that consensus terminal pricing is about to migrate. The transmission runs through the front of the Australian curve and the AUD rate differential, with the belly and longer tenors responding only if the higher terminal is seen as credible rather than a forecast overshoot. Worth watching are the next quarterly inflation print, the labour data, and whether RBA rhetoric validates the hiking bias, since the bank has historically leaned against being led by market pricing. As a single house view rather than a policy signal, it reprices expectations at the margin only.