Here's a bit of background to the upcoming Reserve Bank of Australia meeting (August 2)

Its via Bloomberg, and was out overnight, so this is a bit of background, not breaking news, K?

Adam Donaldson, head of debt research at Commonwealth Bank of Australia:

  • "A combination of the need to avoid currency strength and confidence in a low CPI number is underpinning expectations the RBA will cut in August
  • Weak wage growth, global disinflation trends, and evidence of retail discounting are all contributing to the inflation view."

(CBA are expecting an August cut, and again in November)

NAB economists are looking for a Q2 core inflation reading of 0.4 to 0.5%, which, they say, should be enough allow the RBA to keep rates on hold (a lower number from the CPI data, due July 27 will force a cut).

The full Bloomberg piece is here