27 Apr 2016
RBA: Low CPI to see a 25bps cut in May - NAB
Research Team at NAB, now expects the RBA Board to endorse a 25bps rate cut at its May Board meeting.
Key Quotes
“We assess this as a 55%/45% chance reflecting the Bank’s ability to do slightly more to reduce Australia’s unemployment rate given the very low inflation situation in Australia revealed by today’s very low core CPI outcome.
That said we remain generally optimistic about the near-term performance of the Australian economy and labour market, especially on the east coast of Australia. It is really a fine judgment about the lack of risk in adding a touch of stimulus given low inflation.”
Key Quotes
“We assess this as a 55%/45% chance reflecting the Bank’s ability to do slightly more to reduce Australia’s unemployment rate given the very low inflation situation in Australia revealed by today’s very low core CPI outcome.
That said we remain generally optimistic about the near-term performance of the Australian economy and labour market, especially on the east coast of Australia. It is really a fine judgment about the lack of risk in adding a touch of stimulus given low inflation.”