In the minutes of the last meeting of the Bank of the Reserve of Australia, the monetary policy committee highlighted two particular economic factors that will influence the decision on the interest rate at the next August meeting: the labor market and inflation. And since a new labor market report is not expected before the next meeting of August 12, the inflation figures of this morning, slightly lower than expected, should be enough to pave the way for the RBA to reduce interest rates, says Volkmar Baur, CommerzBank’s currency analyst.
A reduction should not represent any obstacle to aussie
“In the second quarter, the annual rate fell to 2.1%, which is at the lower end of the target range of the Central Bank (2-3%). The central measures, such as the average cut and the weighted average, which are designed to exclude more volatile components, also continued to decrease, although with a 2.7%year-on-year General to 1.9%, indicating that the fall could continue a little more.
“Certainly, not everything that shines is gold. Inflation in services remains too high, and when the quarterly rate of non -tradables is annualized, it is also still well above the target range of the central bank. But I believe that these points are taking into account sufficient Today’s inflation, I don’t think the Central Bank surprises us again.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
