Published • loading... • Updated
Hawkish Hold Tipped as RBA Hands Down Rates Decision
Governor Michele Bullock said the board may raise rates again if inflation stays above target, after forecasts showed price pressures lingering through 2027.
- On Tuesday, the Reserve Bank held the cash rate at 4.35 per cent for the second consecutive meeting, with Governor Michele Bullock confirming the board discussed only maintaining or raising rates.
- Headline inflation moderated to 3.8 per cent in June, yet remains above the RBA target for the 11th consecutive month; fuel tax relief of 16 cents a litre expired earlier this month, risking further price increases.
- Updated Reserve Bank forecasts expect inflation to stay above target until June 2027, while economic growth is projected at just 2 per cent through 2027 and 2028. New home spending is now expected to contract by 0.7 per cent.
- KPMG chief economist Brendan Rynne noted a 2026 hike to 4.6 per cent remains possible, while ANZ predicts a peak-to-trough decline in Australian housing prices of more than 10 per cent, reaching closer to 15 per cent in Sydney.
- While Governor Bullock continues to warn of potential rate increases later this year, market observers suggest the Reserve Bank may struggle to follow through without an unexpected inflation spike. The board intends to gather more information before confirming its policy path.
Insights by Ground AI
Podcasts & Opinions
18 Articles
18 Articles
Sydney Morning Herald+3 Reposted by 3 other sources
RBA’s threat of a rate rise rings a bit hollow
There’s nothing wrong with RBA governor Michele Bullock using her central bank pulpit to talk up the threat of a rate rise. But the bank’s own forecasts say otherwise.
·North Sydney, Australia
Read Full Article
Coverage Details
Total News Sources18
Leaning Left5Leaning Right4Center3Last UpdatedBias Distribution42% Left
Bias Distribution
- 42% of the sources lean Left
42% Left
L 42%
C 25%
R 33%
Factuality
To view factuality data please Upgrade to Premium
