RBA raises inflation forecast and cuts growth outlook
The RBA raised its inflation forecast to 4.8 percent and cut growth outlooks due to high oil prices. Rates are expected to reach 4.35 percent this year.
The Reserve Bank of Australia raised its inflation forecast to 5% while cutting growth outlooks as global energy shocks pressure the economy. The central bank expects sub-par economic expansion for the next two years following a surge in fuel costs. Investors face a tighter monetary environment as policymakers signal that interest rates must rise further to curb persistent price pressures.
### Energy Shocks Drive Policy Shift The RBA's quarterly Statement on Monetary Policy, released Tuesday morning, projects headline inflation will peak at 4.8% in the June quarter. This forecast sits well above the bank's 2% to 3% target range and assumes Brent Crude Oil prices remain near $100 a barrel. Brent futures currently trade at approximately $110 a barrel, suggesting further upside risk to these projections.
