The Reserve Bank of Australia is set to convene at the month’s end to decide on its forthcoming cash rate position.
But Bendigo Bank chief economist David Robertson forecast the RBA would stick with the 3.6 per cent rate level this month.
“Following the August RBA cash rate cut, we are not anticipating a consecutive cut in September – particularly after observing a higher inflation reading in the most recent July indicator,” stated Robertson.
He said another cut was next forecast for November but this would depend on the quarterly jobs data to be released in late October.
“The Reserve Bank likely anticipated the increase in CPI (consumer price index) from the monthly figures due to electricity rebates and other temporary factors, yet core inflation was slightly elevated, so they will aim to review the complete third quarter data on October 29 before proceeding with another cut,” Robertson explained.
“Our projection still places the next RBA rate cut in November, but we are nearing the trough of the easing cycle. Therefore, employment data and export demand will be crucial in determining this timing and whether further rate cuts will be required next year.”
