Underlying inflation data for May fell to its lowest level since 2021. That has raised market bets for a July rate cut to more than 90 per cent. It also encouraged Westpac and Commonwealth Bank to shift their interest rate forecasts. Westpac’s chief economist Luci Ellis, says the next RBA rate cut is likely to be in July rather than August, “but this is not the shoo-in the market seems to think it is.” Westpac expects a terminal cash rate of 2.85%. The Reserve Bank board meets on July 7-8 to set monetary policy. In company news this week, Virgin Australia’s stock has soared after the company’s long-awaited listing on the ASX. It’s been 5 years in the making and many hope this float will revive the lacklustre market for new public offerings. Lab grown meat has been approved safe to eat. It was a bumpy ride on the stock market, but it managed to finish the week in positive territory. Alicia Barry speaks to Kyle Rodda from Capital.com from London and discusses plans by the US to remove the so-called “revenge tax” component of Donald Trump’s “Big, Beautiful Bill” and why the US dollar is falling.
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