Market Watch: CPI Data, RBA Decision, Q2 GDP Growth in Focus

The upcoming week promises to be an eventful one for economic and financial markets. Key releases include CPI data from the US, which is expected to show a temperate reading in July, with inflation pressures becoming less widespread.

According to Bloomberg Finance L.P. and Wells Fargo Economics, existing home sales are forecast to dip 2.2% in July due to higher mortgage rates and ongoing affordability challenges. The same report also estimates that CPI rose 0.13% in July, as lower gasoline prices offset moderate increases elsewhere.

In Australia, the Reserve Bank of Australia (RBA) is expected to hold the Cash Rate at 4.35%, with a hawkish stance maintained despite recent inflation data providing some encouragement. Meanwhile, in the UK, Q2 GDP growth is forecast to remain resilient, which could support a hike later in the year.

Looking ahead, the Reserve Bank of Australia (RBA) will maintain its hawkish bias and keep interest rates unchanged at 4.35% next week. However, another hike in September is expected as the RBA gains clarity on activity and domestic pass-through from higher energy prices.