Australia's low inflation rate fuels expectations for an upcoming interest rate cut by the RBA.

Australia's trimmed mean inflation fell to 0.6% in the second quarter, its lowest in nearly four years, leading to expectations that the Reserve Bank of Australia (RBA) will cut interest rates at its August meeting. The RBA's preferred measure of underlying price growth also rose to 2.7% annually, down from 2.9%. This, coupled with rising unemployment and weaker household spending, strengthens the case for a rate cut to 3.6%. Money markets anticipate a near-certain rate reduction.