Skip to main content

Australia's monetary tightening is not over

The Reserve Bank of Australia (RBA) held its cash rate at 4.5% today, as was universally anticipated. We expect the mining boom to bring above-trend GDP growth over the next few years and there is already little spare capacity in the economy. The upshot is that inflation is likely to trend higher later this year and in 2011. We still expect the RBA to resume its tightening cycle in Q4.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.