J.P. Morgan: The Reserve Bank of Australia is expected to abandon interest rate cuts.

This week, the Reserve Bank of Australia kept the official interest rate unchanged and predicted that challenging inflation risks will persist beyond next year. As the situation becomes increasingly clear, some economists have concluded that the easing cycle that began in February has ended. Morgan Stanley economist Tom Kennedy said that there are a concerning number of sub-indexes indicating rising inflation, which poses the first meaningful challenge to the RBA's previous forecasts of inflation easing in the first few quarters. He added that the easing cycle may have ended, with the overnight cash rate at 3.6%.