Survey shows an increase in key rate by 3.6 % in Australia

Economists believe that the central bank of Australia will raise interest rates three more times. Then, starting from the middle of 2023, growth will stop in an attempt to slow demand and consumer prices without triggering a recession.

The Bloomberg survey provided the average estimate of 35 analysts. Their forecast for the interest rate last month was 3.35%. Now, they believe the Reserve Bank will raise its interest rate to 3.6% by June. Stronger-than-expected inflation data was the main reason for the change in the forecast.

Alan Oster, chief economist at National Australia Bank Ltd. said that at the moment, high inflation and a fast rise in interest rates have not affected the stability of the economy.

In the third quarter, the consumer price index was 7.3%, which is the fastest rate of growth since 1990. This has influenced the opinion of economists, and they have raised their inflation forecasts until 2024. Last month, consumer prices were expected to rise by 4.5% for 2023 and by 2.7% for 2024. According to the survey, this month's forecast expects consumer prices to rise by 5.1% for 2023 and 3% for 2024.