Survey: Australia interest rate hike prospects split economists

Economists cut their headline inflation forecasts for this quarter and next, to 5.1% from 5.2% and 4.1% from 4.2%. — Bloomberg

SYDNEY: Economists remain divided on whether the central bank will raise its key rate again this year, even as cooling inflation suggests less pressure on the Reserve Bank of Australia (RBA) to tighten its monetary policy further.

According to the latest Bloomberg survey, 18 economists predicted the RBA will increase borrowing costs again, ranging from as much as half a percentage-point to as little as 15 basis points, while 17 left the cash rate unchanged at 4.1% for the rest of the year.