Westpac now sees the RBA terminal rate at 4.85%, versus the previous 4.10% view

Westpac's adjustment of the RBA's terminal rate expectation to 4.85% from 4.10% indicates a more hawkish outlook, suggesting stronger inflation or economic growth pressures. This shift could impact market pricing of future rate hikes, potentially leading to a stronger AUD and influencing cross-asset dynamics, especially in fixed income.