- If the quarterly CPI shows inflation falling in the middle of the band over time, the RBA may cut interest rates in the next meeting.
- We have the opportunity to cut rates carefully and slowly to cut rates as the RBA did not increase rates at the levels to be seen elsewhere.
- RBA can cut rates more aggressively if necessary.
- On the tariff, we will have an impact, partially to run deflation forecasts, but the effect on Australia would be less serious than the US. The terms of trade with China are important.
- The Reserve Bank cannot go out of markets and warn markets compared to rate cuts before the interest rate decision.
- The difference between the members of the board is related to the time of deduction, not the direction.
- To ensure that inflation should be banking on us for not getting out of hand again.
- We still have a low unemployment rate relative to history.
- Provided that we are still at the top of inflation and we are confirming, then an easy cycle is coming.
- The cost of monthly CPI number house building and durable items were higher than the RBA idea, which contributes to the rate cut.
- If there is an external blow, the RBA has space to react.
- We are not only keeping interest rates high in case. We are reacting to data.
- If China affects its economy with fiscal stimulation, it can reduce the impact of tariffs on Australia’s economy.
RBA surprised markets, Australian dollar demand fuel
Earlier on Tuesday, RBA surprised and left the cash rate at 14%. Economists were expected to cut a 25-base point rate. RBA rate details Set the stage for a tasty press conference for RBA Governor Mitchell Bullock.
Expert views on RBA rate path
Shane Oliver, head of the investment strategy in AMP and chief economist, commented on RBA’s interest rate decision, stating:
“RBA waiting for more information that inflation is on track for 2.5%. More balanced with RBA, the rest of the risks, remaining” alert “and carefully increasing uncertainty and cash rate> We still fall to 2.85% on the neutral, but more slowly with the next cut.”
AUD/USD reacts to Governor Michelle Bullock’s question -answer session
The AUD/USD pair rose to the RBA’s reaction to the RBA’s interest rate decision, climbing a high level of the pre-repres conference of $ 0.65120 to 0.65567.
AUD/USD gave some benefits during the RBA press conference, which fell from $ 0.65427 to $ 0.65263. The market reaction reflected the expectations of the August rate cuts, but a potentially low-witted RBA policy trend, narrowing the US-Australia interest rate difference in favor of the Australian dollar.
On Tuesday, July 8, AUD/USD ranged from 0.66% to $ 0.65333.