RBA’s Debelle: Current accommodative stance of MonPol to assist inflation to sustain at the target

Dhwani Mehta FXStreet

The Reserve Bank of Australia (RBA) Assistant Governor Debelle is on the wires now, via Reuters, making a scheduled speech titled "Low Inflation" at the Economic Society of Australia Business Luncheon, in Brisbane.

Key Headlines:

Says expects inflation around 2.25% next couple of years.

Expects most downward forces on inflation to eventually abate.

"We would like to be more confident" inflation will be sustained at the target.

Says the current accommodative stance of monetary policy will assist this outcome.

Uncertainty on Govt energy policy contributed to significant underinvestment in new supply.

Electricity prices now falling, could depress inflation over several quarters.

How electricity pricing plays out a "significant uncertainty" for inflation.

Says increased retail competition has put downward pressure on inflation.

Says expects these competition forces still have "some way to run".

Govt steps to lower childcare costs will depress CPI in Q3, maybe longer.

Expects rent inflation to pick up, but take some time to impact on CPI.

"Considerable uncertainty" about spare capacity in labour market.

Says drought to have mixed impact on food prices.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY stabilizes at around 154.00 as markets assess BoJ outlook

USD/JPY fluctuates at around 154.00 in the American session on Tuesday after rebounding from the six-month low it touched below 153.00 earlier in the day. Nevertheless, the upside attempts resemble technical corrections for now as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to support the Japanese Yen.

Gold trades lower despite weaker US Dollar as Fed hike bets weigh

Gold (XAU/USD) remains on the back foot during American trading hours on Tuesday, even as the US Dollar (USD) remains on the defensive. Rising Oil prices and expectations of a Federal Reserve (Fed) rate hike weigh on the precious metal. At the time of writing, XAU/USD trades around $4,400 after reaching an intraday high near $4,443.

XRP ticks up as bullish derivatives, EMA support signal breakout

Ripple (XRP) is grinding upward and getting closer to a short-term breakout above $1.40 on Tuesday. This uptick follows the remittance token's defense of support at $1.38, after a short-lived attempt to breach selling pressure at $1.50 last week.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.