Carl Ang, a fixed income research analyst at MFS Investment Management, said that the Bank of Australia is likely to stay on hold and release a sign of tightening at next week's policy meeting. However, there are good reasons for the market to expect a 20% further rate hike. He added that the CPI for the second quarter fell relatively short of expectations, and all basic inflation indicators seemed to be higher than the Bank of Australia's 2.5% target. The Bank of Australia is unlikely to be satisfied with this result. Ang added that the process of falling back in inflation is too slow to rule out the possibility of further tightening in the current cycle.

Carl Ang, a fixed income research analyst at MFS Investment Management, said that the Bank of Australia is likely to stay on hold and release a sign of tightening at next week's policy meeting. However, there are good reasons for the market to expect a 20% further rate hike. He added that the CPI for the second quarter fell relatively short of expectations, and all basic inflation indicators seemed to be higher than the Bank of Australia's 2.5% target. The Bank of Australia is unlikely to be satisfied with this result. Ang added that the process of falling back in inflation is too slow to rule out the possibility of further tightening in the current cycle.