Bank desk views on the upcoming...........>

AUSTRALIA: Bank desk views on the upcoming Australian CPI Release:

- ANZ: We expect inflation has stabilised a little below the RBA's 2-3% policy

target band. Seasonal increases in education, childcare, and pharmaceutical

products will add to headline CPI in Q1, but are expected to be offset by

seasonal falls in the prices of international holiday & accommodation and fresh

fruit & vegetables. Petrol prices were broadly flat in the quarter. Retail price

deflation remains a key theme.

- CBA: The Q1 CPI figures should confirm that the underlying pulse of inflation

in Australia remains weak. Soft wages growth, underpinned by elevated spare

capacity in the labour market, means that both headline and core inflation

should print at the bottom of the RBA's 2-3% target band. Our forecast profile

has underlying inflation remaining anchored at 2% until Q4 2018. Monetary policy

will likely remain on hold until it is clear that wages growth is on a sustained

upward trend. That means that the cash rate should remain unchanged for at least

the next sixth months.