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Jarden Economists Warn RBA Cannot Easily Accelerate Inflation Decline via Rate Cuts

2026-06-17 02:04:53

According to Jarden economists, the Reserve Bank of Australia cannot use interest rate adjustments to speed up the natural decline of inflation. In a research report released on June 17, they forecast core inflation will remain above 3% until the second half of 2027. The economists attributed the significant inflation overshoot primarily to fuel cost pressures rather than domestic economic overheating, factors largely outside policymakers' control. As Middle East tensions normalize, these pressures may ease, though Jarden remains focused on assessing how much cost pressures will flow into Australian goods and services prices.

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