Australia’s March quarter CPI reading has provided reassuring evidence that inflation likely peaked late last year, but consumer prices still remain “uncomfortably high”, according to BetaShares.
BetaShares’ chief economist, David Bassanese, said there is a good chance now that the RBA won’t need to raise interest rates again this year. The RBA’s policy-setting board meets on May 2 to decide on whether to raise rates, or leave them unchanged as it did earlier this month.
Instead, Mr Bassanese still sees scope for a rate cut on or before Melbourne Cup in early November as the economy slows – and especially if the currently red-hot US economy tips into recession.
BetaShares noted that today’s “OK CPI” rules out the prospect of the RBA raising rates next Tuesday.
