Australia's June CPI came in below expectations, easing near-term pressure on
the Reserve Bank of Australia (RBA) to tighten policy and giving the bank more
room to assess the outlook. The Australian dollar and local government bond
yields fell after the print. The RBA raised rates at its first three meetings
this year to curb inflation that emerged before the US–Iran-driven global energy
shock. Despite prices remaining elevated, another tightening at the August 11
meeting—when the RBA will publish updated quarterly forecasts—now looks less
likely.
