Australia’s July 2026 inflation slowed to 3.5% from 3.8% in June, the lowest since last November, but the Reserve Bank of Australia may still hike again in September if underlying inflation proves stubborn.

The RBA’s target range remains 2-3%, with current readings above the goal across headline and underlying measures.

Trimmed mean inflation held at 3.6% in July, signaling persistent underlying price pressures that keep the rate outlook uncertain.

In India, domestic buyers including long-term investors and state lenders helped cap yields, while insurers, pension funds, corporates, and the central bank bought longer-dated bonds for nine straight sessions, with state banks acting as value buyers amid oil-driven yield moves.

Markets showed initial declines in developed-market yields on US buybacks, then rebounded as crude prices rose and PMI data came in; the USD weakened on fiscal concerns, while the INR faces intervention chatter and importer hedging, aided by abundant domestic liquidity via VRRR operations.

Oil pricing feeds through to higher transport and production costs, which can lift prices for groceries, travel, and everyday goods.

Geopolitical tensions and potential supply disruptions add to oil price volatility and inflation risk in India.

Adequate staple inventories, including rice and wheat, support domestic food availability according to industry observers.

DroneShield posted a loss while Flight Centre withheld forward guidance, underscoring cautious outlooks in travel and security-technology sectors.

Minutes noted strong financial positions among domestic banks and households, suggesting resilience to rising financial pressures despite stability concerns.

Industry voices raised concerns about AI’s impact and ethics in finance and governance, reflecting broader caution on technological disruption.

RBI leaders defended a flexible, data-driven approach amid evolving conditions in India’s monetary policy framework.