Australia: Softer core CPI to call for a May RBA rate cut - ANZ

Dhwani Mehta FXStreet

In the view of the analysts at Australia and New Zealand Banking Group (ANZ), the Australian headline and core CPIs, both are likely to arrive softer in the first quarter.

Key Quotes:

“A sharp fall in petrol prices is the largest negative for the headline figure, as in the prior quarter.

Our forecast for core inflation is broadly consistent with what the RBA published in its February Statement on Monetary Policy. If core inflation for the quarter comes in at 0.3% or below, a rate cut in May is a real possibility, in our view.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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