Don’t rule out another interest rate rise next month, top economist warns
Despite lower-than-expected inflation data, economists warn that the Reserve Bank of Australia may still raise interest rates in August. Persistent inflationary pressures remain above the central bank's target range, keeping the possibility of a rate hike on the table.
Why it matters
Interest rate decisions directly impact mortgage holders and the broader Australian economy, influencing cost-of-living pressures.
shares Share article Australia’s falling headline inflation data may have been enough for many economists to backtrack on predictions of an interest rate rise next month, but one expert has warned it’s far from a done deal.
In its monthly property report, released this morning, real estate valuation and advisory firm Herron Todd White said mortgage holders would be wrong to breathe a sigh of relief just yet.
Opinions are split on what direction the RBA will taken when it meets in mid-August. Graphic: Tara Blancato
Australian Bureau of Statistics figures, released yesterday, showed trimmed mean inflation rose to 3.6 per cent in the June quarter from 3.5 per cent in March , coming in below both market expectations and the central bank’s forecast of 3.8 per cent.
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