Rate cut deferred but still coming after CPI report

30 October 2019

 

In the early 1990s, entrenched inflation was broken by the “recession we had to have”, as it became known. Since then, “core” consumer price inflation has averaged around 2.6% which, coincidentally, is almost the midpoint of the RBA’s target range of 2%-3%. However, it has trended lower and lower since 2009 and it has not been above 2.0% since late 2015. With little sign of inflationary pressures, the RBA has...

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