Australians unlikely to see real income growth until late 2024, RBA says

The central bank also signalled it may raise the cash rate again before the end of the year.

The RBA said the Australian economy had been more resilient than expected. Source: Getty / Traceydee Photography

The Reserve Bank of Australia's (RBA) latest forecasts show Australian households are unlikely to see real income growth until late 2024.

The RBA said the Australian economy had been more resilient than expected, meaning inflation was likely to be more persistent through the coming year.

Its projections also incorporated further increases in interest rates, signalling the bank may raise the cash rate higher than 4.35 per cent — a 12-year record.

Australia's gross domestic product expanded by 2.1 per cent in the last financial year, compared with an expectation of about 1.5 per cent growth.

Household income fell by 3 per cent, with predictions it would fall again by another 2 per cent before expanding by 2.5 per cent in the second half of 2024.