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 lower-than-expected consumer price inflation levels for the March quarter could give the Reserve Bank of Australia room for another pause to interest-rate hikes when it meets on May 2.
Australian CPI for the March quarter printed below market expectations, with trimmed mean CPI rising 1.2% q/q compared to the expected 1.4% and the weighted median rising 5.8% y/y over the estimated 5.9%, according to data released by the Australian Bureau of Statistics Wednesday. Annual CPI printed at 7%, above the 6.9% expected by the market, but down from the December quarter’s 30 year high of 7.8%.
The softer than expected data sent ACGBs higher (see: Richer After Core CPI Prints Lower Than Expected) and the overnight index swap rate priced in a lower chance of a rate hike at the next meeting (see table).
Housing recorded a 9.8% y/y increase in the March quarter and a 1.9 q/q change. The worsening rental situation will play on the RBA’s decision, which is currently debating the effectiveness of monetary policy on the housing market (see: MNI POLICY: RBA Ponders How To Respond To Rental Inflation).
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.