No inflation slowdown, just wishful thinking
Monday 1st August 2022For those hoping that inflation was peaking (anywhere), then Friday didn\u2019t bring good news. PCE numbers in the US are rising, Europe\u2019s CPI is climbing higher, whilst manufacturing from China has slowed. Clearly, we\u2019re not out of the woods yet, with former US treasury secretary Larry Summers saying on Friday that the Fed hasn\u2019t reached a neutral rate yet, and the fact that Jerome Powell has said they have is just \u201cwishful thinking\u201d. So, what does this all mean for the RBA tomorrow. NAB\u2019s Taylor Nugent says the expectation is there will be a 50 basis point rate hike, but Philip Lowe has spoken about a narrow path \u201cclouded in uncertainty\u201d \u2013 is there an outside chance he will see the need to move even faster as global inflation rates show few signs of easing?
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