..we may have to wait to next year for a rate cut.
..looks like EU would likely be first to move to cut. Inflation rises 1pc, smashes forecasts
Joanne Tran
The number: The consumer price index rose 1 per cent in the three months through March, according to the Australian Bureau of Statistics. Market forecasts were for inflation to slow to 0.8 per cent. Over 12 months, CPI slowed to 3.6 per cent from 4.2 per cent. Both figures were stronger than expected. Why it matters: This is the last key piece of economic data that will inform the Reserve Bank’s decision on monetary policy when it meets next month. A small number of economists still predict the RBA will lift the cash rate from 4.35 per cent once more this cycle to tame sticky inflation. What has changed: Traders have been tapering rate cut bets in the US and elsewhere. In Australia, there is almost zero expectation of a rate increase in May, but markets have delayed the start of the easing cycle to early 2025. What next: The RBA is scheduled to meet on Tuesday, May 7.
