Here's another reason the RBA sees to ease rates - inflation expectations

I posted back in May on the sharp decline in inflation expectations in Australia:

• a drop from 3.9% to 3.3%
• post is here (wow .... a negative for AUD … the RBA is complacent on inflation,... this may be enough to give them a jolt out of such complacency)
• The data for June came out this week and expectations are maintained at 3.3%

Some comments from ANZ on this:

ANZ point out that RBA Governor Lowe recently said the Bank has guard against the

• possibility...that Australians come to expect sub-2 per cent inflation on an ongoing basis

ANZ assess that:

• We think the path taken by inflation expectations will be important in the RBA's future policy deliberations. For now, we think the weakness in expectations supports our (admittedly recent) view that the RBA will take the cash rate to 0.75% by the end of 2019.