The Reserve Bank of Australia (RBA) meets on Tuesday and is likely to keep its cash rate unchanged at 4.75%. This is because recent data have been soft while mortgage rates have generally increased by far more than the RBA’s 25bp hike last month. Nevertheless, the tightening cycle is far from over. Spare capacity in the economy has virtually disappeared and GDP growth will probably accelerate to an above-trend pace over the next 12 months.
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