The Reserve Bank has upgraded its economic forecast today, including GDP and inflation, according to Sky News Business Reporter Edward Boyd.
Reserve Bank Governor Philip Lowe flagged the change to GDP in an unusual public press conference, with the bank expecting it to rise.
The bank’s predictions for December 2022 are the GDP will rise by 5.5 per cent from the original prediction of 4.25 per cent, and inflation will rise to 2.25 per cent from 1.75 per cent.
The bank predicts unemployment will stay the same at 4.25 per cent and wage growth will be the same at 2.5 per cent.
December 2023 predictions say the GDP and unemployment rates will not change, wages will grow by three per cent, and inflation will rise to 2.5 per cent.