On react to the Australian Q3 CPI release....>

AUSSIE: On react to the Australian Q3 CPI release Barclays note that despite the

downside surprise, "we maintain our 2017 CPI forecast at 2.0%, to account for

slightly higher second-order effects from the utility tariff hikes, with 2018

CPI inflation forecast at 2.2%." Barclays add while headline CPI has eased,

underlying inflation has also moderated, which may somewhat temper rate hike

expectations in the near term from the RBA. In terms of monetary policy, "we

expect the RBA to remain patient and wait for signs of a more broad-based

recovery across businesses and household incomes before firmly signalling any

change in policy stance." "We expect the RBA to stay on hold until H2 18 and

raise the policy rate by 25bp at the August 2018 MPC meeting followed by a 25bp

rate hike in November."