Moody's: Australia's falling inflation rate will have limited impact on rate cuts

Moody's Analytics economist Cruz said the decline in Australia's overall inflation rate did not increase the likelihood of the Reserve Bank of Australia cutting interest rates before February, but it did reduce the risk of the Reserve Bank of Australia cutting interest rates after February. He said in a report that the August data showed that momentum was moving in the right direction, but there was still some way to go for potential inflation to return to the Reserve Bank of Australia's target level sustainably. He added that the risk of a consumption boom caused by cost-of-living relief measures was easing. He pointed out that household deposits in July increased by more than 2% from June as households deposited cost-of-living support into banks. At the same time, survey data continued to show that Australian households were reluctant to spend money on big-ticket items. (Jinshi)