RBA minutes: Q3 CPI next week is likely to be key - Rabobank

Michael Every, Head of Financial Markets Research at Rabobank, notes that the RBA minutes showed us that Q3 CPI next week is likely to be key to their thinking.

Key Quotes

“Especially as the best spin they could put on the future outlook was for a “reasonable prospect of sustaining growth,” while admitting “there remained considerable uncertainty about momentum in the labour and housing markets.”

In a speech today Governor Lowe added that for the world economy “The biggest problem isn’t that inflation is going to be too low, it’s growth is going to be too low.” The Fed may are may not be learning, but the RBA do now seem to coming to better grips with the ‘new normal’: as such, expect rates to go lower than 1.5% ahead.”