Business surveys suggest that inflationary pressures continue to gain momentum in Australia. Although some of the increase in firms’ pricing intentions likely reflects noise, the RBA will still be concerned that these expectations could become self-fulfilling. Our base case is that the Bank will conclude its tightening cycle with a 25bp hike in August. However, there is a growing risk that it will be forced to hike sooner and more aggressively than we are currently expecting.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
