In the Asian session on Thursday (June 1), the Australian dollar/dollar rebounded from a low level, temporarily reported at 0.6494, a decrease of 0.14%. The RBA expects headline inflation in Australia to return to the upper end of the central bank‘s target of 2%-3% by mid-2025, slower than in many other economies as Lowe looks to keep labor market growth strong.
The latest news from the Commonwealth of Australia:
Lowe warned that if productivity growth failed to pick up, service sector price inflation could continue to rise due to higher unit labor costs. He added that there was also uncertainty about slowing household spending and the global economy. Lowe said: “Success in the fight against inflation is not guaranteed, and it will remain painful for Australian households for some time. We will not declare victory until victory is achieved.” The market expects the RBA to maintain interest rates next month No change, but another 25 basis point hike in August or September is highly likely, with rates expected to remain elevated for the rest of the year. The Reserve Bank of Australia has warned that further rate hikes may be needed to bring inflation back to target.
