NAB Expects Further RBA Rate Hikes Amid Persistent Inflation

Reuters
Feb 04
NAB Expects Further RBA Rate Hikes Amid Persistent Inflation

National Australia Bank Ltd. (NAB) expects the Reserve Bank of Australia $(RBA)$ to follow up its recent cash rate increase with another 25 basis point hike in May, reflecting continued concerns about persistent inflation and stronger-than-expected private demand. NAB notes that economic capacity constraints and a "little tight" labour market are contributing to upward pressure on prices, and the risks are tilted toward more than the currently anticipated 50 basis points of total rate hikes. The RBA’s core inflation forecast for June 2026 has been revised up by 110 basis points over the past six months, indicating that inflationary pressures are broader and stronger than previously assessed. NAB also observes that financial conditions have been easing and housing activity and prices are picking up, further supporting the likelihood of additional monetary tightening.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. NAB - National Australia Bank Ltd. published the original content used to generate this news brief on February 04, 2026, and is solely responsible for the information contained therein.

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