Australia's Inflation Decline Reduces Future Rate Cut Risks

According to Odaily, Moody's Analytics economist Cruz stated that the decline in Australia's overall inflation rate does not increase the likelihood of the Reserve Bank of Australia (RBA) cutting interest rates before February. However, it does reduce the risk of further rate cuts after February. In a report, he mentioned that the data from August indicates a positive trend, but sustainable return of underlying inflation to the RBA's target level still requires more time. He added that the risk of a consumption surge due to cost-of-living relief measures is diminishing. He noted that household deposits increased by more than 2% in July compared to June, as families deposited cost-of-living support into banks. Meanwhile, survey data continues to show that Australian households are reluctant to spend on big-ticket items.