In Australia, flash PMIs for July all pushed further into expansion, suggesting resilience in the broader economy. While not a game-changer, the data marginally reduce the case for near-term RBA rate cuts.
New Zealand’s RBNZ Chief Economist Paul Conway signalled the central bank is prepared to cut interest rates further if inflation pressures continue easing as expected.
RBA Governor Michele Bullock struck a less dovish tone than anticipated, downplaying June’s uptick in unemployment as consistent with forecasts and noting that Q2 core inflation may not have slowed as much as initially expected. She reiterated the need for more data before confirming a disinflation trend and emphasised a measured and gradual approach to easing. An August rate cut remains on the table but is clearly still being debated within the Bank.
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