'It would take a lot’ for the RBA to start cutting rates

George Washington University Assistant Economics Professor Steven Hamilton says interest rates are likely to stay “higher for longer” when compared to current projections.

Treasury forecasts will differ from new RBA projections with the budget expecting inflation to hit the two to three per cent target band a year faster than the Reserve Bank forecast.

Treasurer Jim Chalmers has conceded the budget is only one of many factors influencing rates.

“The chance that (the RBA) is going too hard I think is very small,” Mr Hamilton said.

“It would take a lot for them to start reducing interest rates, even by mid-next year.”

Видео 'It would take a lot’ for the RBA to start cutting rates канала Sky News Australia