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Story summary
- The Reserve Bank of Australia may raise interest rates in early 2026 if growth accelerates and the labor market tightens, says Sally Auld of National Australia Bank.
- Auld notes the RBA faces a complex situation after achieving a soft landing for the economy.
- Auld says that with full employment and 2.25% trend growth, growth acceleration could prompt rate hikes, a view echoed by economists from Commonwealth Bank, UBS, and Barrenjoey Markets.
