RBA revises inflation forecasts after unexpected levels

The Reserve Bank has upwardly revised its inflation forecasts for Australia's economy after the country experienced levels higher than expected. Inflation was predicted to end this year at 4 per cent – now, it's 4.5 per cent. Today's Statement on Monetary Policy also revealed that inflation will fall to 2.9 per cent by the end of 2025. Deutsche Bank Australia Chief Economist Phil O'Donaghoe does not believe the RBA is “done” and will continue to hike rates until inflation is curbed. “We need to see rates a little bit higher from here – I’ve got one more 25 basis point hike in my profile,” Mr Donaghoe said. “My sense is that we need to go higher, very possibly as soon as December.”