Australia's uncomfortably high inflation report last week means there is a real risk the RBA could now hike rates by 25 basis points (bp) at their August meeting. Not only has the inflation rate been creeping higher this year, but its pace has also accelerated, with headline CPI rising to 4% year-over-year (y/y). The government's recently announced 'cost of living crisis' policies are also inflationary. And while it is debatable whether another hike will actually help reduce inflationary pressures, the RBA may simply want to be seen taking action to try and stem it. It goes without saying that the tone of the meeting ... (full story)