Australia's Central Bank Raises Inflation and Wage Growth Forecasts

RBA Warns of Further Interest Rate Hikes

Key Points:

The Reserve Bank of Australia (RBA) has revised up its forecasts for core inflation and wage growth, warning that further increases in interest rates may be necessary.

The RBA expects economic growth to slow, inflation to remain high, spending to stagnate, unemployment to increase, and real wages to fall.

The forecasts are conditioned on a path for the cash rate broadly in line with expectations derived from surveys of professional forecasters.

Brent crude oil price is assumed to be at US$78 per barrel.

The assumed rate of population growth is broadly in line with the profile set out in the Forecasts finalised on 8 February.