The Reserve Bank of Australia has raised its GDP forecast due to increased corporate investment and population growth, while also lowering its inflation expectations.

The Reserve Bank of Australia has raised its GDP expectations due to increased business investment and population growth. The bank forecasts a GDP growth rate of 1.4% for the fourth quarter of 2026, 1.6% for the fourth quarter of 2027, and 1.8% for the fourth quarter of 2028. It expects an inflation rate of 3.6% for the fourth quarter of 2027, 2.6% for the fourth quarter of 2028, and 2.4% for the fourth quarter of 2028. The RBA anticipates an unemployment rate of 4.5% for the fourth quarter of 2026, 4.7% for the fourth quarter of 2027, and 4.8% for the fourth quarter of 2028. The RBA expects the economy to return to equilibrium by 2027, slightly earlier than previously anticipated.