Updated · St George & Sutherland Shire Leader · Jul 22
RBA Says Higher Public Trust Lowers Inflation Expectations After 3 Rate Hikes in 2026
Updated
Updated · St George & Sutherland Shire Leader · Jul 22
RBA Says Higher Public Trust Lowers Inflation Expectations After 3 Rate Hikes in 2026
3 articles · Updated · St George & Sutherland Shire Leader · Jul 22
Summary
RBA staff found a causal link between higher trust in the central bank and lower household inflation expectations, a relationship that can make inflation easier to contain.
Lower expectations matter because anchored inflation views let the RBA curb price shocks with less aggressive rate increases and sustain lower unemployment without reigniting inflation.
The survey also showed trust rises with better knowledge of the RBA, stronger economic literacy and closer engagement with economic news; older Australians and men reported higher trust.
Trust itself has been broadly stable since the first survey a year ago, but confidence that the RBA can meet its policy goals has fallen sharply over the past six months as inflation broke out in early 2026.
The findings land after three RBA rate hikes this year, with inflation pressures tied to the Middle East war and inflation still ranked Australians' top economic concern.