CBA Warns Australian Growth Is Slowing and Inflation Remains Too High
Commonwealth Bank says Australian economic growth is softening while inflation is still elevated, and higher interest rates will take time to return price pressures to target.
Commonwealth Bank of Australia noted that the economy's growth momentum is slowing while inflation remains too high. The bank added that the tightening already delivered will need time to bring inflation back into the target range.
The comments suggest policymakers face a difficult trade-off between weak growth and persistent price pressures. CBA did not give a specific timeline, but indicated the adjustment process will not be quick.
The remarks highlight the risk that interest rates may need to stay restrictive for an extended period even as economic activity cools.
Source: First Squawk