RBA Recap

• The RBA’s third 25bp move this year was fully priced, balancing confidence in disinflation with caution on lingering global and domestic risks.
• Inflation and labour market trends are unfolding as forecast, with growth expected to lift gradually as policy shifts closer to neutral.
• Further cuts remain possible, but the Board has stressed a data-dependent approach, wary of reigniting imbalances while sustaining full employment.

The Australian Economy

• The August cut was widely anticipated, following six weeks of data confirming inflation control and easing labour conditions.
• June jobs and Q2 CPI reports were decisive, while spending, housing, and producer prices confirmed stability without reigniting inflation risks.
• Governor Bullock emphasised a “measured and gradual” approach, signalling further cuts are possible but only at a deliberate pace.

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