The chance of an interest rate cut later this year has been virtually wiped out following the release of the latest inflation numbers.
The quarterly figures show another rise to inflation over the last three months, with the annual figure now at 4 point 5 per cent.
Savanth Sebastian from Commsec says rates won't be coming down, but they won't go any higher either.
“We believe that the Reserve Bank will look at this inflation data and realise it is still high – despite the financial services number,” he said.
“But importantly they will stay on the interest rate sidelines, rather than raising rates any time soon, as a result of the economy slowing quite rapidly.”