According to Jin10 data, Magdalene Teo, a fixed income analyst at Credit Suisse, stated that after the unexpectedly high CPI in July, the Reserve Bank of Australia may delay interest rate cuts. The electricity bill relief policies in New South Wales and the Australian Capital Territory, along with the inflation surge caused by the summer consumption peak, may be temporary.
It is expected that inflation will fall to the lower end of the Reserve Bank of Australia's target range of 2%-3% this month. Nevertheless, index volatility supports the Reserve Bank of Australia in slowing down the pace of interest rate cuts to avoid repeated inflation. Teo pointed out that the market expects the possibility of a rate cut in September to be very slim, with at most two more cuts before the end of the year.