Goldman Sachs: The Australian central bank may raise interest rates again as production capacity pressures intensify.

The minutes of the Reserve Bank of Australia's policy meeting in February emphasized that "it is not possible to have a high level of confidence in any specific path for the overnight cash rate." However, Goldman Sachs' chief economist Andrew Boak stated that there are reasons to believe that there is a higher likelihood of another rate hike. The Reserve Bank of Australia's forecast is based on a technical assumption that further rate hikes are needed. Boak noted that the bank also emphasized that capacity pressures will continue to increase. The Reserve Bank of Australia also downplayed the restrictive financial conditions. Boak predicts that the Reserve Bank of Australia will have a second and final rate hike of 25 basis points in May.