Home›Forex›Central Banks›TD Securities flags higher odds of RBA hike after Aust…

TD Securities flags higher odds of RBA hike after Australia CPI beats

Australia’s July CPI showed headline inflation at 3.5% and trimmed mean CPI at 3.6%, making the September RBA meeting more likely to involve a rate move.

Reported · Written up by our desk · Central Banks

TD Securities said Australia’s July CPI created a stronger inflation impulse, with headline and trimmed mean measures both beating expectations and staying uncomfortably high.

According to FXStreet, TD Securities analyst Prashant Newnaha noted that annual headline CPI came in at 3.5%, while annual trimmed mean CPI was 3.6%, both above consensus.

The firm argued the data now makes the September Reserve Bank of Australia meeting “live,” raising the odds of a rate hike by year end, even though it still keeps an official forecast that the cash rate will remain on hold.

TD Securities also suggested the September RBA meeting is the next key window for potential action, with the November meeting as the following likely month if tightening is delayed.

More like this

Sources