The analysts reactions to today's Q3 CPI and the implications for Reserve Bank of Australia monetary policy continue
Earlier:
- Goldman Sachs are still expecting an RBA rate cut next week
- NAB's outlook for the RBA after today's weak CPI: On hold
- HSBC changes view on RBA - expect a cut next week
- Australia - ANZ interest rate strategists: Weak CPI "a game changer"
- Australia Q3 CPI comes in lower than expected - responses
- Australia Q3 CPI: +0.5% q/q (0.7% expected)
And now from Westpac Chief Economis Bill Evans ... in brief:
- We expect the board will decide to keep rates on hold
- The surprise drop in the inflation measure is not unique and, in the past, the Bank has looked through a one off number
- The motivation for cutting next week would be a significant downward revision to the growth outlook
- The data flow and the RBA's recent commentary does not point to such an event
