SURPRISE! Time To Forget About More Rate Cuts As CPI Jumps?

Australia’s core inflation accelerated beyond expectations last quarter, complicating the Reserve Bank’s path to further policy easing and prompting money markets to slash bets on a near-term interest-rate cut. The latest data is way off the RBA’s August forecast, from 0.6% for the trimmed mean to 1%, and clearly heading in the wrong direction. Heads should roll, but of course they will not! Inflation is NOT low, and ISN’T falling. If the RBA did it’s job then we’d get rate rises, not cuts. This is an object lesson for those spruiked property purchasers, betting on more significant rate cuts ahead. […]