The Reserve Bank of Australia has raised its inflation forecast, assuming no rate cut until mid-2025

On May 7th, < b > The Reserve Bank of Australia sharply raised its outlook for headline inflation on Tuesday and removed the possibility of a rate cut from this year's forecast, suggesting that it may not cut rates until mid-2025. In response to the disappointing high inflation rate in Quarter 1, RBA economists predict that inflation will only slow as desired if interest rates remain at 4.35% for a long time. In its quarterly statement on monetary policy, the RBA assumes that the cash rate will remain at its current level until mid-2025, about nine months longer than its February assumption.