RBA to Keep Hiking While Inflation Woes Outstrip Jobs Pain -- Market Talk
Dow Jones03-20 12:27
0427 GMT - The Reserve Bank of Australia's decision to hike interest rates this week was underpinned by its view that upside risks to inflation outweigh the downside risks to employment, says Abhijit Surya, economist at Capital Economics. That will likely remain the case for some time, he adds. Given the ongoing surge in prices of refined petroleum products, inflation in Australia could rise to nearly 6% by mid-year, Surya says. Meanwhile, timely data suggest the job market is far from capitulating. Consequently, Capital Economics lifts its forecast for the peak in the official cash rate from 4.35% to 4.60%, he adds. (james.glynn@wsj.com; @JamesGlynnWSJ)
(END) Dow Jones Newswires
March 20, 2026 00:27 ET (04:27 GMT)
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