In accordance with Bpaynews, National Australia Bank’s chief economist Sally Auld warned that the Reserve Bank of Australia (RBA) may need to raise interest rates as early as the first half of 2026 if economic growth accelerates and the labor market tightens further. Auld highlighted that Australia is operating near full employment with limited spare capacity, which could lead to renewed inflationary pressures through stronger wages and capacity-driven price increases. The outlook is more hawkish than current market expectations and could support the Australian dollar if data surprises positively.
NAB Economist Warns RBA May Hike Rates by Early 2026 Amid Tight Capacity
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