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Politics

Poppy Johnston

RBA decision risks higher cash rate peak

Inflation Nick McKim RBA Tom Kennedy Ai group Greens Reserve Bank

The surprise slowdown in the pace of rate hikes risks dragging out the rate hiking cycle and forcing the central bank to go even higher than expected to dampen demand.

The Reserve Bank of Australia's 0.25 percentage point lift is the sixth consecutive rate hike and brings the cash rate to 2.6 per cent.

The unexpected shift to a slower pace of tightening has prompted some economists to revise their forecasts for the cash rate peak.

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