The RBA has increased the cash rate by 175 basis points in the space of four meetings. This is the most aggressive tightening from the RBA in a four-meeting window since inflation targeting commenced in 1993. However, the latest move will not be the last in the cycle.
The RBA has revised its inflation and growth forecasts, which are consistent with our expectation that the cash rate will move higher and into contractionary territory.
What will this mean for growth in Australia? And what are the implications for the property market?
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