National Australia Bank economists on today's Q3 CPI and the implications for the Reserve Bank of Australia next week.
- Say its likely the RBA will revise its CPI forecasts a little lower in next week's Statement of Monetary Policy
- But, this doesn't mean that the RBA should or must cut interest rates.
- NAB expects the RBA to remain on hold next week
- RBA is still concerned about the property market, and also is of the view that the domestic economy has been performing better in recent months (above average business conditions, solid employment growth)
- NAB add that if there is an easing in house price pressures, the RBA is well-placed to provide further support to the domestic economy
I've posted more on the responses to the CPI today: