With the Reserve Bank of Australia having left its cash rate unchanged for two consecutive meetings, we think its tightening cycle is at an end. Indeed, the RBA appears increasingly concerned that rate hikes are starting to take their toll on household spending. At the same time, the Bank also believes that it has tightened policy sufficiently to return inflation to its 2-3% target over the next two years. If we're right that incoming data on economic activity will disappoint, while inflationary pressures continue to ease, it's unlikely that the Bank will hike rates again.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services