Westpac chief economist Luci Ellis said further increases by the Reserve Bank of
Australia are not the baseline. The RBA left the cash rate at 4.35% on Tuesday
and used hawkish language on inflation-transmission risks and potential external
shocks, but Ellis, a former RBA senior manager, said the bank’s own forecasts
show inflation easing slowly toward target and this is not a forecast path that
supports further rate increases.
