Bank desk views on today's Australian.....>

AUSTRALIA: Bank desk views on today's Australian Q3 CPI release

- ANZ: Domestic inflationary pressures remain subdued. We expect the Q3 print to

show continued retail price deflation, weak rental inflation and subdued

administered inflation. We expect a very muted pass through from the weaker

currency, but tradable inflation will be boosted in Q3 by petrol and the

seasonal rise in international airfares. Further deceleration in domestic market

services inflation, however, would likely be worrisome for policymakers, not to

mention ourselves.

- RBC: We expect Q3 inflation to confirm a benign price environment consistent

with ongoing slack in the econ despite above trend growth & a reasonably healthy

labour market. Momentum in the key core measure has waned somewhat and Q3 will

mark the 11th consecutive quarter of annual core inflation at or below the floor

of the RBA's 2-3% target. Given the leading indicators of inflation, we continue

to see core inflation stuck around 2% for much of the next 12 months.

- TD: Inflation hugging the lower 2-3% bound is unlikely to shift the RBA from

its stance that the next move is up for the cash rate, but not for a long time.