Door opens on rate cut as inflation continues to fall
Mortgage holders could receive more rates within weeks after the inflation measure of the spare bank decreased to 2.7 percent per year.
The Australian Statistical Office on Wednesday said in a statement, the average inflation that jumped the variable items to measure the underlying growth in prices was 0.6 percent in June quarter.
The figure was consistent with the expectations of consensus.
Since the March quarter, it represented a decrease of 0.2 percent in the annual cutting average and continued to move towards the midpoint of two to three percent of RBA.
The result, however, was slightly above the estimation of the Central Bank in a last statement about the monetary policy in May.
However, with a recent increase in unemployment and weaker home expenditures than expected, it should be sufficient to provide more 25 basis points.
After the last meeting, where RBA shocked the market by keeping the rates constant, Governor Michele Bullock said that the Board is still waiting to confirm that inflation will still be reached by 2.5 percent.
Before the ABS data release, the money markets priced 95 percent, and RBA’s chance to reduce the cash rate to 3.6 percent on August 12th.
Title Consumer Price Index increased by 2.1 percent in June for 12 months.
ABS Price Chairman Michelle Marquardt, housing, food and health costs raise the inflation higher, he said.
“This is the lowest annual inflation rate since March 2021,” he said.
In the meantime, falling gasoline prices received some steam from the index.
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