According to Jinshi data, the money market has almost completely 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 the core inflation rate close to the upper limit of the target range.
Energy costs could push up future inflation, and the Reserve Bank of Australia is not in a hurry to cut interest rates, believing that the current policy is only slightly restrictive. New inflation forecasts are expected to be released in August.