According to Jinshi, Capital Economics economist Suriya said that although the Reserve Bank of Australia kept the official cash rate unchanged at 4.35% at this week's policy meeting, its hawkish tendency has softened. Reserve Bank of Australia Governor Bullock revealed that the committee did not explicitly discuss the issue of raising interest rates as in previous meetings.
Suriya noted that Capital Economics has brought forward its forecast for the first rate cut by the Reserve Bank of Australia to February from May next year as the latest CPI data showed a clear slowdown in underlying inflation in the third quarter. However, he added that this timeline may be too optimistic given the tight labor market.