ANZ Bank: RBA Still Lacks Confidence in Interest Rate Cuts

FXStreet data on July 2nd, although the Australian Federal Reserve can stand pat at next week’s policy meeting, keeping the official cash Intrerest Rate at 4.35%, decision-makers are still cautious. Adam Boyton, chief economist at ANZ Bank, said that the average inflation rate at the end of the past two quarters was 0.94%, so the Australian Federal Reserve is unlikely to gain enough confidence in inflation to cut interest rates this year. He pointed out that with strong rise in retail sales in May and June, coupled with evidence that consumer confidence is rising, the consumer industry may have emerged from its weakest period.