Barclays Research discusses its review for this week's RBA policy decision. 

"The Reserve Bank of Australia (RBA) today increased its cash rate by 25bp to 0.35%, the first rate hike since 2010. The bank’s decision to start normalising the cash rate from its emergency setting was not a surprise. However, the RBA was more aggressive in starting hikes than expected, with no analysts in the Bloomberg survey expecting a 25bp hike, and only a few expecting a larger 40bp hike," Barclays notes. 

"We expect rapid and continuous hikes until September to 1.50%, after which the RBA may slow down the hiking cycle," Barclays adds.