Pithy (accurate) commentary from BNZ on the RBA in the contest of yesterday's CPI report:
- Australian CPI data surprised to the upside yet again
- underlying inflation (trimmed mean) ... annualising the past six months puts inflation running at 3½%, an understatement considering the accelerating pace of late.
- Alongside labour market strength, the data suggest the country is no different to the other dollar-bloc nations (NZ, US and Canada) despite the protestations of the RBA.
- The Bank will surely capitulate on its rates outlook where, as recently as December, it suggested that conditions for an increase in the cash rate would not be met in 2022.
Its a packed week coming up from the RBA, all the better for the furious back-pedalling on their overconfident prior forecasts: