The RBA's best guess is that it's done hiking interest rates
If the Reserve Bank's economic forecasts are right, then the governor says it is done raising interest rates. But the risks of it being wrong are skewed towards another hike.
The Reserve Bank Australia (RBA) believes it has completed its recent interest rate hike cycle, according to recent economic forecasts. Inflation has been lower than previously expected, and the bank anticipates it will fall closer to its 2-3 percent target by 2027. The current cash rate is projected to remain stable at 4.35 percent through 2028.
RBA Governor Michele Bullock, mindful of her predecessor's approach, has been cautious about giving forward guidance on interest rates. However, she emphasized that even though no further rate increases are planned, the bank will act if inflation remains above target for an extended period. Risks to the inflation outlook remain predominantly on the upside, including strong global economic growth, potential flare-ups in Middle East oil issues, persistent energy price shocks, worsening economic capacity constraints, and the looming El Niño impact on food production.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
