Election logjam won't force RBA rate cut this week

Australia's political future may hang in the balance, but the current impasse and its ramifications won't be enough to force the Reserve Bank's hand at its July policy meeting on Tuesday, say economists.

They say the central bank's focus remains weak inflation, leaving the second-quarter consumer price index, released in four weeks, pivotal to its next move. A surprisingly low first-quarter inflation read-out forced a 25 basis point cut, to 1.75 per cent, in May.