Rate relief in sight? RBA brings forward inflation forecast but keeps borrowers on edge

The Reserve Bank has brought forward its timeline for when it thinks inflation will finally return to target, but has issued a warning that its forecasting is ‘uncertain’ and rate cuts remain far in the distance.New insights from the RBA follow a unanimous decision by its nine monetary policy board members on Tuesday to keep the cash rate on hold despite high inflation.While borrowers will be relieved not to be facing a 15-year high cash rate after all, clues in the latest RBA forecasts reveal pressure on households its far from over.The RBA says it can't be certain tightening is over just yet. Picture: Hu JingchenAddressing the media following Tuesday’s rates decision, governor Michelle Bullock said the Reserve Bank will still need more time to see whether its earlier rate hikes will be enough to ensure inflation will continue to cool in line with its latest forecasts.The bank is now expecting inflation to ease back into its target range by late 2027 – a more optimistic picture than the mid-2028 timeline painted in May.Deloitte Access Economics partner Stephen Smith said the new expectation and this week’s rate hold show the RBA “increasingly feels its job may be done” when it com...