Reserve Bank of Australia is expected to raise interest rates by 50 basis points this week

Westpac Bank is also expecting a rate hike this time:

• We expect the Reserve Bank to raise the cash rate by 50 basis points to 2.00% at this May's Monetary Policy meeting.

• We also expect the Reserve Bank to continue tightening policy after the 50 basis point increase in April.

• We think the recent moves will bring cash rates closer to the 3.4% peak forecast in February and with a faster tightening pace, that peak will be reached soon.