The economy ended 2025 in a strong position though activity indicators in 2026 have been a little more mixed.
23 March 2026 | 3 min read
23 March 2026
Too many shocks too little slack
- The economy ended 2025 in a strong position though activity indicators in 2026 have been a little more mixed.
- Inflation and capacity pressures remain evident, and the RBA will need to see activity slow to build comfort on inflation.
- We see the RBA increasing rates again in May, taking the cash rate to a peak of 4.35% and remaining on hold until mid-2027.
Uncertainty remains extremely elevated, with the supply disruption in the Middle East adding sharply to near term inflation and creating risks to both inflation and growth.
Read the full report: Forward View Australia: March 2026 (PDF, 1MB).
