RBA action ahead?

Posted by Scriptaty | 5:20 AM

The next RBA meeting is scheduled for Aug. 2 and some analysts see the potential for another interest-rate adjustment.

“Australia will hike rates,” Staskow predicts. She points to the strong June Australian employment data, which revealed the overall unemployment rate is at a 30- year low of 4.9 percent, while 52,000 new jobs were created when an increase of only 10,000 was expected. Also, higher petrol prices and Aussie dollar weakness early in the year may have boosted import inflation, she adds.

Sean Callow, senior currency strategist at Westpac Institutional Bank, also expects a rate hike Aug. 2 with the potential of a move to 6.25 percent in the fourth quarter. Another meeting will follow on Sept. 6.