Institution: It is too early to rule out the possibility of further interest rate hikes by the Reserve Bank of Australia.

Carl Ang, a fixed income research analyst at MFS Investment Management, stated that it is highly likely the Reserve Bank of Australia will remain on hold at next week's policy meeting while signaling a tightening bias. However, he noted that the market's expectation of a further 20% chance of rate hikes is well justified. He added that the CPI for the second quarter was lower than expected by a relatively small margin, and various core inflation indicators seem to be above the Reserve Bank of Australia's target of 2.5%, making it less likely that the RBA board would be satisfied with this outcome. Ang further mentioned that the pace of inflation's decline is too slow to eliminate the possibility of further tightening in the current cycle.