RBA to hold due to spot on CPI? - TDS

Analysts at TD Securities explained that the recent AUD Q2 underlying CPI was spot-on the RBA’s expectations so they don’t think this will be a trigger for the Bank to cut.  

Key Quotes:

"While the RBA in the recent July Board meeting Minutes noted that the economy was looking a little more mixed (employment, credit), overall, GDP is on track to reach at least 3% this year and next.  A lack of a GDP outlook downgrade—combined with a likely unchanged inflation profile—is unlikely to sway the Board members to cut next week."

"Recall the May Minutes revealed that some members saw a case for waiting to cut “They could see cases both for moving at this meeting or at the subsequent meeting”.  With a lack of a shock in either inflation or key activity indicators, there really isn’t a clear trigger for a cut next week."