Westpac pushes back on RBA hike calls, sees rates on hold through 2026
Westpac Economics argues against market expectations of RBA rate hikes, predicting rates will remain on hold through 2026. While other banks foresee hikes, Westpac sees the next policy move as easing in 2027. They highlight that inflation will fall below target by late 2026, and current economic conditions don't justify rate cuts next year. Westpac emphasizes policy lags and expects inflation pressures to fade, keeping the RBA in a wait-and-see mode.
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