Reason number 1 is not unique to the RBA, persistently high inflation, as the most recent data confirms:
The Wall Street Journal has an interesting article that dissects the (ugly) data and the implications for the RBA. But it’s the last part of the article that hits the mark (formatting mine, for emphasis):
The coming months will likely witness events such as
- a fairly significant increase in the minimum wage for Australian workers
- and implementing generous mid-year income tax cuts.
- These measures will coincide with a federal budget that will likely include new spending measures aimed at mitigating the rising cost of living.
As a result, economists are divided on whether the RBA will be sufficiently confident that inflation is under control to cut interest rates this year, and some believe it will be the last major central bank to ease its policy. policy.
The Journal is closed, but if you can access it, it’s a good read.
***
AUD/USD update:
cnbctv18-forexlive
