Standard Chartered forecasts the RBA will pause rate hikes due to easing inflation and labor market conditions.
The Reserve Bank of Australia is expected to keep its cash rate unchanged at 4.35% during its 11 August meeting, according to market analysts. Core inflation for Q2 and short-term expectations have softened, reducing pressure for further tightening.
The RBA last raised rates in November 2023, bringing the cash rate to its current level. Analysts note that while inflation remains above the target range, recent data suggests a moderating trend, aligning with global disinflationary pressures.
No additional rate hikes are anticipated for the remainder of 2024, as labor market conditions show signs of cooling, reducing wage growth risks.