The Reserve Bank has again revised up its inflation forecasts but says Australia’s outbreak of rapidly rising prices has likely peaked.
, to 3.35 per cent, a 10-year-high, and indicated 4 per cent-plus rates may be needed to tame high inflation.
Markets expect the cash rate to peak at 3.97 per cent in August, implying the boarding will deliver multiple additional rate rises. On Friday the bank said there was considerable uncertainty around the level of interest rates needed to achieve its objective of lowering inflation. “Longer term inflation expectations and wages growth in Australia have so far remained consistent with the inflation target. It is important this remains the case,” the statement said.
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