- Before August meeting, we will get the next quarterly CPI report
- The difference today is not direction, it’s all about timing
- If quarterly CPI report reaffirms our expectations, that will validate our easing path
- And “that’s what we are waiting for”
And this pretty much hits the nail on the head. So long as the Q2 CPI report on 30 July reaffirms the inflation path, the RBA will still push for a rate cut in August. So, we’ll have three weeks of waiting for now.
This article was written by Justin Low at www.forexlive.com.