Westpac maintained its forecast that the Reserve Bank of Australia will raise interest rates in August after the release of CPI data.
According to Jin10, Westpac said May headline CPI came in below expectations mainly due to declines in travel, clothing, and recreation prices, which it described as largely seasonal factors.
The bank said this did not change its view that underlying inflation pressures are intensifying. It added that May data more strongly indicated that second-round effects from Middle East supply shocks were expanding, with rising costs for fuel, transport, plastics, and chemical products gradually spreading beyond energy-related goods into a wider range of areas.
Westpac warned that wage-cost pressures in the second half of 2026 could further lift inflation, particularly in market-based service sectors. It also said policy support measures, including fuel excise tax relief, were expected to be phased out over the coming months, which it said would keep inflation risks in place beyond the August policy meeting.
Westpac Expects RBA Rate Hike In August Despite Softer May CPI
2026-06-24 12:26:22
Disclaimer:
1. The information provided does not constitute investment advice. Investors should make independent decisions and bear all risks themselves.
2. The copyright of this content belongs to the original author. The views expressed herein are solely those of the author and do not represent the stance or position of this website.
Previous article：
印度央行行长：外汇市场波动保持有序
