- Have to wait and see what the data says
- Not just inflation but also other developments like labour market and US tariffs
- We’re not endorsing the market path on future rate cuts
- Our job is to be a little more cautious
- We’re in a position where we can watch and wait to see what happens on tariffs
- We are cautious about the outlook, there is a lot more uncertainty especially on the international stage
- We are not forecasting a recession in Australia in our base case
- But there is a lot of uncertainty stemming from overseas risks
Bullock is pushing the “wait and see” narrative as she wants more clarity on Trump tariffs and also the upcoming CPI report on 30 April. As a reminder, the RBA will next meet on 20 May. So, they are going to use up every bit of time they can get away with before pre-committing to anything.
This article was written by Justin Low at www.forexlive.com.