Inflationary pressures will abate before long

The Reserve Bank of Australia continues to equivocate about the outlook for interest rates, given uncertainty over the extent of spare capacity in the economy. However, with wage pressures showing signs of easing and firms reporting softer growth in output prices, we still expect disinflation to take hold in the months ahead. Accordingly, we're sticking to our view that the Bank will resume its easing cycle late next year.