Another rise in the official cash rate expected this week.

Another rise in the official cash rate, to 3 per cent, on Thursday is seen as a virtual certainty. But the markets will be looking for signs that the Reserve Bank is having second thoughts about the pace and extent of monetary tightening still to come.

Westpac chief economist Dominick Stephens said the message would probably be the same as in March: The economy is gathering momentum, construction is booming, inflation pressures are building and therefore the OCR needs to rise.

The Reserve Bank made it clear earlier this year that it expects to increase the OCR by about 2 percentage points over two years.

Another rise in the official cash rate, to 3 per cent, on Thursday is seen as a virtual certainty. But the markets will be looking for signs that the Reserve Bank is having second thoughts about the pace and extent of monetary tightening still to come.

Westpac chief economist Dominick Stephens said the message would probably be the same as in March: The economy is gathering momentum, construction is booming, inflation pressures are building and therefore the OCR needs to rise.

The Reserve Bank made it clear earlier this year that it expects to increase the OCR by about 2 percentage points over two years.

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