The Reserve Bank of Australia might not achieve its inflation target for at least two years without raising rates further, unless Treasurer Jim Chalmers uses the coming budget to cool the economy, economists warn.
They say the RBA will almost certainly be forced to lift its near-term inflation forecasts at its board meeting next week after March quarter inflation figures came in stronger-than-expected.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com