Australias second-quarter inflation data aligned with central bank expectations, providing a positive signal for monetary policy while keeping interest rate decisions cautious, Reserve Bank of Australia (RBA)

Australian consumer prices grew at the slowest pace in over four years in the June quarter, data showed on Wednesday, while core inflation hit a fresh three-year low and cemented market wagers for a cut in interest rates next month.

Today’s figures confirm inflation is easing, but not as quickly as the bank would like. With the underlying rate still above forecast, the Reserve Bank board may prefer to wait for the September quarter data before cutting interest rates, giving it greater confidence the slowdown is durable.