MNI BRIEF: China To Enhance Customs Clearance

MNI BRIEF: China Consumer Satisfaction Up

MNI: PBOC Net Drains CNY68.6 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1728 Thurs; -0.64% Y/Y

MNI China Press Digest March 13: SMEs, Shipping, Guangdong

MNI BRIEF: US Budget Deficit At $1.15T Thru Feb

MNI: SWEDEN FINAL FEB CPIF +2.9% Y/Y

MNI: US FEB TREASURY BUDGET -$307.0B

EZ/UK T-Bill Calendar: 1/3/6-month UKTB Due Thursday

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

AUSTRALIA: Australia’s Disinflation As Good Or Better Than Others

AUSTRALIA
APACAustraliaBulletMarketsFixed Income BulletsForeign Exchange Bullets

The RBA began its easing cycle in February with a 25bp cut bringing the OCR to 4.1% as it had “more confidence that inflation is moving sustainably towards the midpoint” of the 2-3% target band. The trimmed mean, its preferred measure, eased to 3.2% in Q4 and was only 2.8% in January. In the past, it had cited sticky inflation, especially in services, in other OECD countries as something it was monitoring. The latest data show that while it remains stubborn in some place, Australian inflation is either in line or below other countries, which should make further easing possible if this is sustained and inflation continues heading lower.

  • The RBA tightened monetary policy after and by less than other countries and as a result began its easing cycle later too. It has only cut by 25bp so far compared with the UK’s 75bp, US’ 100bp, NZ’s 175bp and euro area’s 185bp. The RBA remains cautious though noting that easing didn’t pre-commit it to further moves.
  • Australia’s OCR is now below the US’, UK’s and Norway’s, which is consistent with recent inflation outcomes. Only Canada’s and the euro area’s measures of core inflation in January were below Australia’s monthly trimmed mean of 2.8% y/y. 

OECD underlying CPI y/y%

Keep reading...Show less
293 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The RBA began its easing cycle in February with a 25bp cut bringing the OCR to 4.1% as it had “more confidence that inflation is moving sustainably towards the midpoint” of the 2-3% target band. The trimmed mean, its preferred measure, eased to 3.2% in Q4 and was only 2.8% in January. In the past, it had cited sticky inflation, especially in services, in other OECD countries as something it was monitoring. The latest data show that while it remains stubborn in some place, Australian inflation is either in line or below other countries, which should make further easing possible if this is sustained and inflation continues heading lower.

  • The RBA tightened monetary policy after and by less than other countries and as a result began its easing cycle later too. It has only cut by 25bp so far compared with the UK’s 75bp, US’ 100bp, NZ’s 175bp and euro area’s 185bp. The RBA remains cautious though noting that easing didn’t pre-commit it to further moves.
  • Australia’s OCR is now below the US’, UK’s and Norway’s, which is consistent with recent inflation outcomes. Only Canada’s and the euro area’s measures of core inflation in January were below Australia’s monthly trimmed mean of 2.8% y/y. 

OECD underlying CPI y/y%

Keep reading...Show less