Markets price a possible RBA rate increase next week as the bank watches domestic and global inflation risks while weighing stronger domestic growth momentum. Westpac economist Pat Bustamante forecasts Australia Q3 GDP YoY at 2.3% (Q2: 2.1%), saying the economy has shown greater resilience than expected. Bustamante warns the RBA is unlikely to welcome stronger growth—policy makers are aiming to nudge activity below trend to secure disinflation—and sustained momentum would increase uncertainty ar

Markets price a possible RBA rate increase next week as the bank watches domestic and global inflation risks while weighing stronger domestic growth momentum. Westpac economist Pat Bustamante forecasts Australia Q3 GDP YoY at 2.3% (Q2: 2.1%), saying the economy has shown greater resilience than expected. Bustamante warns the RBA is unlikely to welcome stronger growth—policy makers are aiming to nudge activity below trend to secure disinflation—and sustained momentum would increase uncertainty around disinflation and complicate the RBA’s policy path.