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VIEW: ANZ: Australia's Inflation Momentum Cements February Rate Hike

RBA

ANZ note that “Australia’s CPI data showed momentum continued to build in domestically driven inflationary pressures in Q4. This cements a 25bp cash rate hike in February and supports our view of another 25bp hike in March, especially if we see a solid print for Q4 wages in mid-February as expected.”

  • “Trimmed mean CPI surprised to the upside at 1.7% q/q (6.9% y/y), well above the RBA’s pick of 6.5% y/y. Non-tradables and services inflation accelerated, both annualising around 8½% y/y. These measures better reflect underlying and domestically driven inflationary pressures and are more relevant for the RBA’s policy settings than the headline measure.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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