Central Banks
RBA’s Peak Rate Scenario of 4.8% May Suggest Further Tightening
- Australia central bank looked at three different policy paths
- Higher rate brings inflation back to target by the end of 2024
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Australia’s central bank considered alternative policy scenarios where its cash rate peaked at 4.8% without triggering an economic downturn, internal documents show, suggesting further tightening might be in prospect.
The Reserve Bank assessed three paths in the documents dated March 2023 and released under a Freedom of Information Act request by Bloomberg News on Thursday. The options discussed were based on technical assumptions used in the RBA’s quarterly economic forecasts published in February.