ICYMI – NAB changed forecast for RBA next week to ‘on hold’ (prior was +25bp rate hike)

Justin had the news posted on Wednesday on the change of call from the National Australia Bank:

NAB reasons that it expects the RBA to leave rates unchanged in August on the back of:

1, the Q2 CPI result:

and 2, while it continues to monitor incoming data on the economy’s response to rate rises so far.

NAB analysts add that services inflation remains high and “by itself increases the risk that inflation will not return to the 3 per cent target within a reasonable time frame”. NAD adds further that this is even before considering many other services price increases likely in the September quarter.

Currently at the RBA:

This article was written by Eamonn Sheridan at www.forexlive.com. Source