Enjoy it while you can: July’s RBA rate pause is likely to be fleeting, unless a lot goes right

Inflation remains too high globally – and Australia’s may still be ‘out of whack’ by the time the board next meets in August

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The relief many Australians felt when the Reserve Bank left its key interest rate unchanged might turn out to be fleeting unless a lot goes right with the economy in coming months.

Analysts were equivocal. The RBA’s rare inaction – only the second board meeting in 14 that it didn’t hike its cash rate – was variously a “hawkish pause” or a “coin-toss decision” (though not a stumping, perhaps fortuitously).

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