According to Jinshi Data, the money market has almost fully priced in expectations for a rate cut by the Reserve Bank of Australia next week, but there are still doubts in the market. The inflation environment is not as optimistic as the latest data suggests, with core inflation rates close to the upper limit of the target range.
Energy costs could drive up future inflation, and the Reserve Bank of Australia is not in a hurry to cut interest rates, believing that current policies are only slightly restrictive. A new inflation forecast is expected to be released in August.