Institution: Australia's inflation outlook is quite severe
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Core inflation will increase by 3.5% year-on-year in the first quarter of 2026, then peak in the second half of 2026, with growth closer to 4.0%. These forecasts from Westpac Bank may suggest that the Reserve Bank of Australia will need to further tighten its policy, as the central bank will be deeply concerned about once again failing to keep the inflation rate close to its 2.5% target.
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