Government leaves RBA to go it alone

Contrary to the claims made by Treasurer Jim Chalmers, measures in the 2024/25 Budget will do little to alleviate price pressures. That means the onus of bringing inflation under control will fall squarely on the RBA. On the bright side, however, data released this week show that the labour market is cooling in earnest, while firms are reporting softer cost pressures. As a result, we're sticking to our view that the RBA won't tighten policy any further.