Inflation update to shape further rate cut expectations
Since the last interest rate deduction of the Australian Reserve Bank, the first inflation report will give an early indicator as to whether the debtors can expect relief one after the other.
The Australian Statistics Office will publish monthly inflation figures in July on Wednesday.
While the Central Bank emphasizes less than a more comprehensive three -month version to the narrow monthly data series, it will still provide an indication of the direction of travel.
In the figures of the previous month, the consumer price index fell below the RBA’s two to three target groups, but analysts expect the title figure back to backfire in July, considering an increase in fuel prices.
Anz We hope to see that there is a slight increase in annual inflation in the Monthly CPI indicator.
However, except for holidays and variable items, inflation will be easier from 2.5 percent to 2.3 percent; Another sign that inflation continues to fall in a sustainable way, as RBA expects.
Despite the ongoing moderation in price growth, traders are pessimistic about the September rate meeting of the bank, and the money markets are less than one -third of the chance to reduce 25 basis points.
The RBA Board should give more information about the reasons behind the decision of the Council of the Board, which is a few minutes away from the last meeting to be published on Tuesday.
Governor Michele Bullock felt that the board of directors was increasingly confident that inflation was under control, and that the labor market was slightly less tight than before at a press conference after the meeting.
In a research note, Anz economists said that more information about how tight the board saw the labor market or how close the cash rate is.
In addition, ABS updates about the construction works and capital expenditures suppressed in the economic area this week, draw attention.
In the meantime, Wall Street investors entered the stocks behind the implied close -term ratio deduction.
The Blue Chip Dow Jones Industrial Average paved the way for a potential deduction in September with the comments of Federal Reserve President Jerome Powell, but before then, he stressed the importance of work and inflation data.
Dow increased to 841.14 points or 1.88 percent, 45.626.64, because S&P won 396.22 percent with S&P 500, 6.466.55 points and Nasdaq composite.
Australian stock futures increased to 84 points or 0.94 percent, to 10.319 percent.
S&P/ASX200 lost 51.7 points or 0.57 percent points on Friday, wider ordinary orders 49.9 points or 0.54 percent points to 9.234.3.
Australian Associated Press is a beating heart of Australian news. AAP has been the only independent national Newswire of Australia and has been providing reliable and fast news content to the media industry, the government and the corporate sector for 85 years. We inform Australia.
