Institution: RBA Still Needs to Overcome Inflation, there will be More Interest Rate Hikes

Although the RBA has raised interest rates by 400 basis points so far, inflation in Australia has not been fully controlled.
In a research note, Franklin Templeton said volatility-adjusted inflation was sticky due to high unit labor costs.
The report added that while wage growth remains steady, it is likely to pick up as the minimum wage rises and the public sector wage cap is removed.
The RBA is likely to hike rates two more times by the fourth quarter, with movement thereafter dependent on data.
So it’s no surprise that market expectations for a rate cut by the end of 2023 have all but evaporated.