RBA intervenes: Aussie interest rates paused to review data

<img width="250" height="166" src="https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-RBA-intervenes-interest-rates-paused-4916258361-iStock-950975006-250×166.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="RBA intervenes: Aussie interest rates paused to review data" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-RBA-intervenes-interest-rates-paused-4916258361-iStock-950975006-250×166.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-RBA-intervenes-interest-rates-paused-4916258361-iStock-950975006-700×465.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-RBA-intervenes-interest-rates-paused-4916258361-iStock-950975006-768×511.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-RBA-intervenes-interest-rates-paused-4916258361-iStock-950975006-120×80.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-RBA-intervenes-interest-rates-paused-4916258361-iStock-950975006-245×163.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-RBA-intervenes-interest-rates-paused-4916258361-iStock-950975006-500×332.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/08/FIN-LP-RBA-intervenes-interest-rates-paused-4916258361-iStock-950975006.jpg 1256w" sizes="(max-width: 250px) 100vw, 250px" /><p>According to currency analyst Luca Santos at ACY Securities, the CPI forecasts predict an inflation decline to 3.25% by the fourth quarter of 2024. A reduction would ensure the decreased inflation target for the further quarter of 2025 is met. Although the change is barely discernible, it implies that the <a href="https://www.leaprate.com/forex/market-news/rba-preview-aud-usd-bearish-south-of-0-67/" target="_blank" rel="noopener">RBA</a> and other financial authorities understand that the pace of inflation decrease needs rapidly speeding up if the 2025 target is to be met.</p>
<p>When focusing on the RBA’s data-conscious outlook, Santos stated:</p>
<blockquote><p>“The RBA has shown elevated sensitivity to data, and I doubt this will change very soon: another high inflation read may well convince it to add a hike before the peak. My base case is still for one last 25bp increase to be delivered in September when electricity tariffs could deliver an inflation surprise.”</p></blockquote>
<p>Santos indicates that the Australian dollar may underperform against the NZD until the RBA implements a final inflation hike.</p>
<p>Australia’s interest rates remain lower than other global powerhouses; the US has a rate of 5.25%; Canada has a two-decade record high rate of 5%; New Zealand’s rate remains at 5.5%.</p>
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