The upbeat tone of the Statement on Monetary Policy confirms that the Reserve Bank of Australia has become less worried about low inflation and that further interest rates cuts have become much less likely. But the RBA is not expecting inflation to rise far enough to warrant interest rate hikes. Our view that the Bank is too upbeat on GDP growth implies that rates may not rise until 2020.
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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services