I'll gather together some of the reactions to the Australian Q3 CPI (data here)
Its given a boost to those looking for an Reserve Bank of Australia rate cut at the meeting next week (November 3)
- OIS pricing is at 91% for a cut
- Deutsche Bank, say RBA to remain on hold next week, despite today's data increasing the chance for a cut
- RBC is Sydney says the data opens the door wider to a cut by year end. November may be too early though, December more likely
- Shane Oliver of AMP Capital (chief economist) was quick of the mark on Twitter - the result reinforces his confidence in a cut next week from the RBA.
- CBA - today's data increased the chance of a cut next week, but they maintain view for on hold
- ANZ tip on hold next week, but say cut could come sooner than had previously expected (they have been calling 2 cuts in 2016)
- Citi expect a cut next week, but Its a close call
- WPAC " six month annualised pace of core inflation came in at a very modest 1.7%qtr, a moderation from 2.5%yr in Q2 and a recent peak of 2.7%yr in Q1. Core inflation is currently on track to dip below the RBA's inflation bank if it continues to remain around its current pace" ... "suggesting it is set to undershoot the RBA's current expectations for 2015."
More to come