Reserve Bank of Australia Governor Bullock is not going to cut interest rates at the next meeting with this sort of data flashing across the terminals:
Read that post, the trimmed mean was a bit better. But kep in mind that the Australian government and the Reserve Bank of Australia have a firm agreement to target the mid point of the 2-3% band, its been well publicised. there is no way Bullock will allow a rate cut at the September 29-30 meeting with this data.
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Now, do note, as posted a couple of times already today:
As noted earlier today, the monthly CPI data from Australia does not show all components of the CPI, that'll have to wait for the quarterly data release (late in October).
- The monthly CPI indicator does, however, provide a timelier indication of inflation using the same data collected for use in the quarterly CPI. The monthly reading includes updated prices for between 62 and 73 per cent of the weight of the quarterly CPI basket, its not the full picture.
This is all the more reason for a hold next week, the RBA can reconsider at the November 3-4 meeting after the quarterly data late in October hits.
