Capital Economics Asia-Pacific senior economist Abhijit Surya says the RESERVE
BANK OF AUSTRALIA has only marginally softened its hawkish tilt. The RBA
reiterated it will take whatever measures it deems necessary to return inflation
to target, including further increases in the cash rate, but attached that
commitment to a condition—action would follow only if upside risks to inflation
materialize. Surya adds that despite the committee's firm wording on inflation,
Capital Economics does not expect another rate hike in this cycle.
