Inflation Eases, Rate Hike Fears Dwindle as Reserve Bank Looks to August

The Reserve Bank of Australia (RBA) has received some relief as inflation figures for the June quarter came in lower than expected, reducing the likelihood of a rate hike at the bank's August meeting.

The Australian Bureau of Statistics reported that annual headline inflation fell to 3.8 percent in June, below the RBA's forecast of 4.8 percent.

This development has led markets to reassess their expectations, with the chance of a rate rise at the August meeting now down to just 4 percent, from 22 percent previously.