RBA Cash Rate Decision Hinges on Inflation Drop

The Australian Bureau of Statistics has reported a drop in inflation from May to June, providing some relief for mortgage holders.

The consumer price index (CPI) measure of inflation fell to 3.8%, down 20 basis points from the previous month.

This unexpected decrease could influence the Reserve Bank of Australia's decision on keeping the cash rate at 4.35% when it meets on August 11.

LJ Hooker group head of research Mathew Tiller believes the figures are a 'relief', but cautioned that there is no guarantee the RBA will keep the cash rate steady.