RBA Rates Peak but Relief Delayed by Nearly a Year, Economists Warn

Financial markets and economists now agree that borrowing costs have peaked in Australia at the highest level in 18 years, though the Reserve Bank of Australia’s aggressive tightening cycle still has significant ground to cover before fully influencing the broader economy.

A survey of 32 economists polled by The Australian Financial Review indicates that while the Reserve Bank of Australia may have paused its rate-hiking cycle at 4.85 per cent, a sustained relief remains some way off as policymakers assess how tighter financial conditions are affecting economic activity.

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