Australia CPI data is due out this week (Wednesday local time)
The Australian Financial Review has a piece up (may be gated): RBA likely to look through weak inflation rate
- Core inflation is likely to have eased further in the first quarter this year, but this won't be enough to force a cut to the cash rate, according to most economists.
The piece reports on BoA/ML comments:
- See inflation falling the bottom of the RBA's target band (2 to 3%)
- Say disinflationary pressure can discourage consumer spending and business investment
- But Australia is different: falling unemployment & improved economic indicators, AUD fall will mean higher import prices
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As per the headline to the article, the RBA is on hold for now. The next meeting it May (3rd).
Some Aussie rock on ANZAC Day:
