TD Research changes its call for the RBA call, adding a 25bps hike in May for a new terminal rate at 3.85%.

"The RBA lifted the cash rate 25bps as expected, but today's Statement read more hawkish compared with prior Statements. Speculation of a RBA pause has been building for months but today's Statement puts that on the backburner. There was no mention or reference to its Central Banks peers slowing or even considering pausing, adding to the hawkish tone," TD notes. 

"A 25bps hike from the RBA next month remains our view but now we expect the RBA to pause in April, with a final 25bps hike in May to our new forecast of terminal of 3.85%," TD adds.