Shares to gain; Ramsay considers Asian JV sale; PointsBet US sale news pending;Qantas exec shake-up; Musgrave rejects Westgold bid; CPI data at 11.30am AEST.
Josh Gilbert, market analyst at eToro said the inflation figure would need to be “stupendous” to stop the RBA from increasing the cash rate by a quarter of a point in July, given a red-hot labour market and the board’s continuous declarations of inflation being too high.
The monthly consumer price index for May will be released at 11.30am AEST with forecasts of a rise of 6.1 per cent. “A reading below 6.1 per cent should be met with optimism from the market, given it shouldn’t ignite any further hawkishness from the Reserve Bank,” said Mr Gilbert. The local share market has come under pressure this year due to financial markets pricing in further tightening from the central bank, he said. “A change in the aggressive stance from the RBA would be good news for the local market, especially if the cash rate can stay below the now-expected 4.6 per cent.”