RBA Cuts GDP, Inflation Forecasts as Rate Hikes Cool Activity

Australia’s central bank lowered its forecasts for inflation, wages and broader GDP growth this year, suggesting its 11 interest-rate increases since last May are gaining traction in the economy.

The Reserve Bank estimated trimmed mean inflation at 6% in the year-ended June, down from 6.25% seen three months earlier, its quarterly Statement on Monetary Policy showed Friday. The gauge is then likely to ease to 4% in December versus 4.25% previously. Wages, which were earlier expected to peak at 4.2% later this year, are now seen at 4% by December and 3.7% by June-2025.