Flaws in the RBA’s inflation numbers cast doubt on rate cuts

Just one day after the Reserve Bank of Australia delivered its third interest rate cut this year, economists and investors are warning that the central bank is too optimistic about the path of inflation, which could mean fewer future cuts than many had been hoping for.

As the RBA cut the cash rate to 3.6 per cent on Tuesday, it also downgraded its economic growth outlook because of stubbornly weak productivity. At the same time, the central bank forecast a decline in inflation and a stable labour market.

Source: https://www.afr.com/markets/debt-markets/flaws-in-the-rba-s-inflation-numbers-casts-doubt-on-rate-cuts-20250813-p5mmjj