Coming up from the RBA:
ANZ are expecting the RBA to raise its inflation forecasts:
- to forecast core inflation of 3% by mid-2022
And to also lower its unemployment forecast:
- sub-4% unemployment by the end of 2022
The update forecasts will be in Friday's (4 Feb) SoMP.
Also from ANZ:
- Despite this we see the Board looking for wages to accelerate further before the cash rate is raised.
- The RBA has a challenging message next week, explaining why it won’t move despite core inflation likely to reach 3% by mid-2022.
ANZ info via ANZ's Head of Australian Economics David Plank