An AAP article reported inflation has risen by .6% in the June quarter, less than the headline forecast increase of 1% and within the Reserve Bank’s (RBA) target range. The RBA met yesterday and due to the slower than expected inflation results has left interest rates on hold for this month. RBC’s Capital Market’s Su-Lin Ong said the results combined with an uncertain backdrop globally could mean the RBA leaves the official cash rate on hold at 4.5% for the rest of the year.

Another AAP article said demand for home loans rose 2.3% in the June quarter, although they are still 20% lower than this time a year ago. Veda’s Chris Gration said households have adjusted to the tougher economic conditions by being more cautious.