Aussie CPI comes in well below RBA's 2-3% target
|The Australian Q3 trimmed mean CPI rises just 0.4% q/q; vs the expected 0.5% while the Australia Q3 consumer prices rise 0.6% q/q vs expected. 0.8%. That has left the trimmed mean below the target of between 2-3% at 1.8%.
This is reassuring the bears that the RBA is not going to be in a hurry to raise interest rates anytime soon considering the Central Bank would be expecting underlying inflation to merely edge up to 2%/yr, and that is something they had already factored in. For the RBA to move, they are likely to need to see CPI fall in between there 2-3% bracket target. 1.8% is way off the mark for a hawkish consideration and will weigh heavily on the Aussie, especially in a strong environment for the US dollar.
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