ANZ: Reserve Bank of Australia Expected to Remain on Hold for an Extended Period

He is more pessimistic about economic activity than the Reserve Bank of Australia (RBA) Board. He stated that when the Board raised the overnight cash rate to 4.35% this month, it chose to ignore the recent decline in consumer and business sentiment. Chambers wrote in a report that higher inflation's hit to disposable income could be significant enough to push economic activity below the RBA's expectations. "This would change the trade-off between economic activity and inflation," he added.