Capital Economics has dropped its call for an RBA rate hike next month after this week’s Q2 CPI was mild enough for the Reserve Bank of Australia to regard policy as sufficiently tight, economist Abhijit Surya said. Surya warned the disinflation path

2026-07-31

Capital Economics has dropped its call for an RBA rate hike next month after this week’s Q2 CPI was mild enough for the Reserve Bank of Australia to regard policy as sufficiently tight, economist Abhijit Surya said. Surya warned the disinflation path could be uneven; alongside a weak housing market, Capital Economics now expects the RBA’s next move will be a rate cut, though not before H2 2027.