Nassim Khadem

People are really still feeling cost of living pressures are pulling back, struggling with mortgages.

So I don't think we're going to see a massive rise in consumers rushing out now.

But in terms of where things go next, Dan, we have to see, right?

There's so many unknowns, like will the war continue?

If the Strait of Hormuz remains closed, that will obviously have another oil price shock that will obviously still feed into inflation.

And then you and I will be back here talking about more rate rises coming.

So

There's still a lot of unknowns as to where inflation and rates go next.

So the market's decreased its expectations of another rate hike.

And this is for next month, for June.

Beyond that point, some of the big banks are actually still forecasting another rate rise later this year.

You know, as we've discussed, rate rises take time to work their way through the economy.

So the RBA is going to be watching for further signs that inflation, especially housing inflation, has slowed.

And as we've said over and over, let's also not forget the situation with the war in the Middle East is very volatile.

If that continues longer than markets are expecting, then that will definitely keep inflation elevated and the risk of more rate rises.

Absolutely, Dan.

And like you and I sit here and we talk about how the RBA thinks this is great.

Inflation is slowing.

The rate of growth of inflation is slowing.

But for people, they're not feeling that.