UBS predicts RBA may keep interest rates higher for longer

According to the Golden Ten report, UBS economist George Tharenou said that Australian consumers are facing great financial pressure due to rising mortgage repayments and soaring costs of daily necessities. However, UBS data showed overall financial conditions were closer to average or neutral, supported by surging asset prices and spending by older households. Therefore, as inflationary pressure remains relatively difficult, UBS expects the Reserve Bank of Australia to maintain higher interest rates for a longer period of time, with the first interest rate cut postponed to February next year, and the Reserve Bank of Australia's easing policy to lag behind other central banks around the world.