Australian Monthly Wrap

ANZ Research reports that the RBA raised the cash rate to 4.35% in May amid high fuel-driven inflation, though the housing market and employment data are showing signs of cooling.

Key Takeaways

• 1.The RBA raised the cash rate by 25bp to 4.35% in May and is expected to remain on hold through August as economic activity softens.
• 2.Surging fuel prices (up 32.8% m/m in March) are a primary driver of headline household spending and inflation, costing households roughly $18 more per week.
• 3.The Australian housing market is cooling, with Sydney and Melbourne prices declining 0.6% in April, leading to lower ANZ growth forecasts.

Table of Contents

• One final hike amid high inflation and fuel pressures
• Rates and policy: RBA 25bp rate hike and on hold at 4.35%
• Australian data: Fuel prices drive inflation and consumer spending
• Global: Oil prices and US data
• Data releases
• Key Charts
• Recently published reports
• Forecasts*
• Important Notice

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