World’s first tightening cycle in the works

Rising trend: Bullock is tough on inflation, saying if the RBA didn’t raise the interest rate it would have signalled a tolerance for inflation being above target. — AP

SYDNEY: Australia is on track for the world’s first tightening cycle of 2026 as economists and markets ramp up bets on another interest-rate increase, marking a sharp reversal for a central bank struggling to contain resurgent inflation. 

Two of Australia’s big four banks as well as Goldman Sachs Group Inc switched their calls since the Reserve Bank of Australia (RBA) on Tuesday became the first major monetary authority in the world to raise rates this year.