Cooling Australian economy and Iran de-escalation set to keep RBA on hold
According to ABC News, signs of cooling in the Australian economy and the de-escalation around Iran are shaping a backdrop that supports the Reserve Bank of Australia (RBA) keeping rates on hold. This is not investment advice.
According to ABC News, recent Australian economic data show signs of cooling in consumer spending and private-sector investment. Combined with the global de-escalation around Iran, this trend raises the probability that the RBA will keep rates at current levels in the near term.
Market pricing has shifted in line with this view. Economists stress that the easing of crude prices could help bring headline inflation visibly lower, although rents and services inflation may stay sticky. RBA Governor Michele Bullock said last week the board would follow a data-dependent path.
The next quarter's labour and CPI releases will be decisive. This article is for information only and should not be treated as investment advice.
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