Australia’s central bank is expected to keep rates steady this week as inflation slows, though elevated price pressures may prompt a hike in September.
The Reserve Bank of Australia is widely anticipated to leave its cash rate unchanged at 4.35% during Tuesday’s policy meeting. Recent inflation figures undershot expectations on both headline and trimmed mean measures, reinforcing the case for a pause as prior tightening takes effect. However, underlying price pressures remain high, and the RBA may adopt a hawkish stance amid risks from rising energy costs.
Analysts see limited scope for cuts in the near term, with some forecasting a 25 bps hike in September if economic data supports it. The RBA will have additional employment and inflation prints before its next decision, offering clarity on demand strength and potential second-round effects from energy prices.
In the U.S., key releases include ADP employment data, existing home sales, and inflation figures, while the U.K. will publish GDP updates. Markets will watch for signs of persistent inflation or economic slowdowns across major economies.