Australia Core CPI Expected to Rise, Keeping RBA Hike Debate Alive
TD Securities expects the RBA's preferred core CPI to increase 0.9% q/q in Q2, matching consensus and up from 0.8% in Q1, pushing annual core inflation to 3.7%. This keeps the rate hike discussion active as inflation risks persist.
TD Securities strategists forecast the Reserve Bank of Australia's preferred core CPI measure will rise 0.9% quarter-on-quarter in the second quarter, in line with consensus estimates and up from the previous quarter's 0.8% gain. The annual rate would edge higher to 3.7%, just shy of the RBA's 3.8% projection.
The sticky inflation numbers are expected to keep the debate on further policy tightening alive, with the RBA maintaining a hawkish bias amid persistent price pressures. The outcome is closely watched as it may influence the Australian dollar and rate expectations.
Source: FXStreet Forex News