The Australia 200 trades 30 points (-0.35%) lower at 8707 as of 2.40pm AEST.<\/b><\/p>\n
ASX 200 drops as RBA cools rate cut hopes\u00a0<\/p>\n
After an early 22-point gain to a high of 8759.9, the Australia 200 (ASX 200)<\/a>\u00a0slipped into negative territory as it digested Reserve Bank of Australia (RBA) Governor Michele Bullock\u2019s speech at the Annika Foundation lunch in Sydney titled ‘The RBA\u2019s Dual Mandate \u2013 Inflation and Employment.’<\/p>\n Since taking over from Philip Lowe as RBA Governor in September 2023, Bullock has enjoyed a strong start to her tenure. However, the RBA\u2019s decision to keep interest rates<\/a> on hold earlier this month received widespread criticism after it caught the market and analysts off guard, who had been expecting a rate cut.<\/p>\n The situation was further exacerbated by the Australian unemployment rate surging to a 44-month high just a week later.<\/p>\n Inflation concerns and\u00a0interest rate expectations<\/p>\n Nevertheless, the RBA Governor has elected to look through the recent criticism and, in her speech, downplayed the rise in employment, saying it wasn\u2019t a surprise. She also noted that monthly inflation<\/a> data suggests the inflation rate may not fall as fast as forecast in May.<\/p>\n