RBA Warns Borrowers: No Relief in Sight Despite Inflation Drop

The Reserve Bank of Australia (RBA) is signaling that borrowers may not receive relief from higher interest rates anytime soon, despite expected drops in headline inflation figures.

Economists forecast a decrease in headline inflation from 3.8 percent to around 3.2 percent for July, but the RBA remains concerned about underlying price pressures and is prepared to raise rates again if needed.

AMP chief economist Shane Oliver described this improvement as 'an illusion of progress' due to a statistical artifact caused by a high July 2025 reading rolling out of the 12-month calculation.

The trimmed mean inflation rate, which strips out the top and bottom 15 percent of price movements and is closely watched by the RBA, is expected to improve only marginally from 3.6 percent to 3.5 percent.