RBA Fears Capacity Constraints Could Limit Scope for Rate Cuts

Core Viewpoint - The Reserve Bank of Australia indicates that the path for rate cuts may be limited due to high levels of capacity utilization and persistently high inflation expected to continue into the next year [1] Economic Indicators - Elevated levels of capacity utilization in the economy are noted, suggesting that the economy is operating near its potential [1] - The outlook includes inflation rates that are described as uncomfortably high, which is expected to last well into the next year [1]