RBA didn’t see inflation bump coming. Rate hikes are on the way

The economic story can change quickly, right? Not long ago the conversation was all about the rate cut cycle. Now we are talking about interest rate increases.

Dealing with hard data forces economists in our major institutions to have at least some humility, especially the Central Bank boss who has not seen the recent rise in inflation.

Latest data shows that prices continued to rise at an unhealthy pace of 3.8% in the year to January.