The minutes of the RBA’s March meeting revealed that the Board has now dropped its tightening bias. However, we suspect it will be a while before the Bank can be confident it has broken the back of inflation. Indeed, with net overseas migration continuing to shatter records, capacity pressures are likely to remain elevated in the near term. Accordingly, we don’t expect the RBA to cut rates before November, making it the last DM central bank to do so.
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