Institution: The Reserve Bank of Australia may completely reverse the rate cuts of 2025.

Optimal Economics chief economist Stephen Walters said that the grand experiment of observing how low Australia's unemployment rate can go without sparking inflation has gone off the rails. He said, "There's no spinning this," but whether it's overall inflation or core inflation, whether it's goods inflation or services inflation, the year-on-year increases have exceeded the Reserve Bank of Australia's predictions. This new economic reality basically locks in rate hikes. He added that the three rate cuts last year may even be completely reversed by the end of this year.