There’s no doubt inflation is becoming an issue given the 3.5% annualised growth rate printed today. It’s hard to see how the Reserve Bank of Australia (RBA) walks away and we reiterate our view last week that interest rates will rise sooner than expected, probably in the second half of this year. The RBA is once again stuck in reverse.
Flashnote: It's hard for the RBA to walk away…
There’s no doubt inflation is becoming an issue given the 3.5% annualised growth rate printed today. It’s hard to see how the Reserve Bank of Australia (RBA) walks away and we reiterate our view last week that interest rates will rise sooner than expected, probably in the second half of this year. The RBA is once again stuck in reverse.