ANZ Forecasts RBA to Hold Interest Rates Amid Easing Inflation

ANZ economists are predicting that the Reserve Bank of Australia (RBA) will keep interest rates on hold at its upcoming meeting on August 10 and 11. The bank has lifted the official cash rate three times this year, taking it to 4.35%.

The latest consumer price index (CPI) data brought some relief, with inflation rising 3.8% in June, down from 4% in May. This is below the RBA's forecast of 4%. The bank has a target range of 2% to 3%, and while inflation remains above this, the easing expectations could influence their decision.

Bianca Patterson, a mortgage broker and finance specialist at Calculated Lending, agrees with ANZ. She hopes the RBA will hold rates steady, giving the economy time to absorb the previous rate increases and allowing the bank to assess their impact before making another decision.