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.