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

Author: Eamonn Sheridan | Category: Central Banks

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

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.

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