August 13, 2024 at 11:02PM
This piece is from analyst Michael Pascoe here is Australia, arguing that a Reserve Bank of Australia interest rate cut is likely on the horizon despite all the tough tough from Governor Bullock last week.
Check it out here:
The Reserve Bank fibs and has no idea about wages causing inflation
The key points:
RBA typically downplays rate cuts until the last minute
Inflation hawks looking backward, doves looking forward
Wage growth not driving key inflation areas
RBA admits uncertainty in forecasting and labor market dynamics
Latest wage price index shows annualized 3.4% growth in H1 2024, below CPI
RBA focused on anchoring inflation expectations around 2.5% target
Pascoe suggests that an interest rate cut could be “live” by November meeting. I agree.
This screenshot is from the front page of the Bank’s website.
The next lot of inflation data reports are due on:
August 28
Monthly Consumer Price Index indicator for July
September 25
Monthly Consumer Price Index indicator for August
October 30
September Quarter 2024 – this is the biggie!
Monthly Consumer Price Index indicator for September
The next RBA meeting following the quarterly CPI due on October 30 is on 4 and 5 November.
This article was written by Eamonn Sheridan at www.forexlive.com.
