A softer‑than‑feared inflation print has left the RBA facing a genuine “close call” in May—balancing the case for further tightening against the risk of overcooking the economy. A pause now looks plausible, but with inflation still sticky, the door to more rate hikes later in 2026 remains firmly open.

Read | Stephen Miller’s Opinion in the AFR

Stephen Miller

Stephen Miller is GSFM’s market strategist. His expertise in international economic and policy analysis, as well as domestic and global economic and financial market developments, has resulted in him becoming a regular commentator on central banks, rates and inflation.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.