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

<p>Justin had the news posted on Wednesday on the change of call from the National Australia Bank:</p><ul><li><a href="https://www.forexlive.com/news/nab-now-sees-no-rba-rate-hike-in-august-20230726/" target="_blank" rel="follow" data-article-link="true">NAB now sees no RBA rate hike in August</a></li></ul><p>NAB reasons that it expects the RBA to leave rates unchanged in August on the back of:</p><p>1, the Q2 CPI result:</p><ul><li><a href="https://www.forexlive.com/news/australian-q2-headline-cpi-08-qq-vs-10-expected-20230726/" target="_blank" rel="follow" data-article-link="true">Australian Q2 Headline CPI 0.8% q/q (vs. 1.0% expected)</a></li></ul><p>and 2, while it continues to monitor incoming data on the economy's response to rate rises so far. </p><p>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.</p><p>Currently at the RBA:</p>

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