While headline inflation plunged in May, we doubt that this will have assuaged the Bank’s concerns about soaring unit labour costs and rising inflation expectations. Accordingly, we’re sticking to our forecast that the Bank will lift the cash rate by 25bp at each of its next three meetings, with rate cuts only happening in Q2 2024.
ANZ Drop-In (4th July): Why the RBA’s war on inflation will end in recession. Join this special post-RBA briefing on what more the Bank will need to do to get price pressures under control, and the macro and market implications of any further tightening. Register here.
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