Despite the current positive economic outlook, interest rate increases may come sooner than most expect. Sally Auld, Chief Economist at National Australia Bank, stated that growing evidence suggests the Australian economy is nearing capacity constraints, marking the official end of the Reserve Bank of Australia's (RBA) easing cycle. She further noted that, given the economy is undergoing a soft landing, the RBA may need to start considering rate hikes as early as the first half of 2026.
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