MNI RBA Review – June 2024: “Alert” To Upside Risks

EXECUTIVE SUMMARY:

• The RBA left rates at 4.35% as was expected but a hike was discussed for the second straight meeting while a cut was not on the table. Its hawkish neutral stance was unchanged reiterating that it is “not ruling anything in or out” and that the Board will “remain vigilant to upside risks to inflation”.
• The June statement and tone was marginally more hawkish than in May with the RBA noting that not only is inflation still above target but proving “persistent” and the latest data showed that “the pace of decline has slowed”.
• The Board acknowledged the upward revisions to consumption in Q1 GDP and reverted to recognising the uncertainty around household spending.
• For now the Board is worried about upside risks to inflation and seems happy to leave rates “higher for longer” to return it to the target band.

Click here to see full review:

RBA Review - June 2024.pdf