RBA: Inflation expectations moving lower - ANZ

David Plank, analyst at ANZ, thinks that declining inflation expectations are a factor in the RBA’s decision to ease monetary policy.
Key Quotes
“The RBA Governor recently said that the Bank has “to guard against th[e] possibility…that Australians come to expect sub-2 per cent inflation on an ongoing basis”.”
“We think the path taken by inflation expectations will be important in the RBA’s future policy deliberations. For now, we think the weakness in expectations supports our (admittedly recent) view that the RBA will take the cash rate to 0.75% by the end of 2019.”
Author

Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

















