QIC says RBA sees inflation risks skewed higher despite 4.35% hold

• QIC flagged unbalanced upside inflation risks in Australia despite a broadly balanced baseline outlook in the RBA’s August SOMP.
• RBA held the cash rate at 4.35%; Governor Michele Bullock signaled another hike remains possible.
• Central forecast assumes no further tightening; growth slows below trend through 2026; unemployment rises as policy restrains demand.
• Underlying inflation seen returning to the target midpoint only in 2028; weak productivity keeps supply constrained.
• Key risk: excess demand may be larger than estimated; capacity pressures could persist despite a sharper housing downturn.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. QIC Ltd. published the original content used to generate this news brief on August 14, 2026, and is solely responsible for the information contained therein.