Capital Economics economist Abhijit Surya said softer-than-expected Australian inflation will likely keep the Reserve Bank of Australia on the sidelines. With core inflation unexpectedly down in Q2, the RBA is unlikely to feel immediate pressure to hike; the data could prompt it to keep rates unchanged at the August meeting.

2026-07-29

Capital Economics economist Abhijit Surya said softer-than-expected Australian inflation will likely keep the Reserve Bank of Australia on the sidelines. With core inflation unexpectedly down in Q2, the RBA is unlikely to feel immediate pressure to hike; the data could prompt it to keep rates unchanged at the August meeting.