On April 28, according to a Reuters survey of economists, the Reserve Bank of Australia is expected to keep interest rates unchanged at 3.6% for the second consecutive meeting next Tuesday to assess the impact of past rate hikes on inflation.
If high inflation persists, it could force the RBA to consider another rate hike in the coming months, economists said.
ANZ’s senior economist said there was nothing in recent major data releases that could sway the RBA’s decision to assess the lag in monetary policy.
But they do believe that further tightening of monetary policy is necessary.
Inflation figures for the June quarter are due at the end of July and will provide some key information for the RBA’s August meeting, when inflation figures are expected to be high enough to allow the central bank to make a decision in August.