TD monthly inflation bounces

TD Securities’ monthly inflation rose 0.4% in March and 1.5% over the past year. The trimmed mean rose 1.6%. Annette Beacher said:

“While low inflation certainly allows the RBA to cut the cash rate further, we pencil in only one more cash rate reduction to 2 per cent in May, with risks of delay into the second half of the year, should the housing sector keep expanding at an uncomfortable pace”.

Fair enough but it won;t housing that determines the pace of cuts. It will iron ore and dollar.


  1. Can anyone recall when Captain Glenn’s current and probably last captaincy of the good ship “Titanic” ends, as it would seem only fitting for him to be on deck to steer his ship of immaculate creation in to the iceberg?

  2. This is irrelevant. There is going to be a one-off headline inflation hit from a collapsing AUD.

    • Except inflation will be impacted in an ongoing relentless drive with each month and each new low is reached. The dollar wont just drop to its new low and stay there – as evidenced.

      Further as we revert to our mean position of an irrelevant far flung outpost in humanity and the rest of the world continues to recover having taken its medicine, we will continue to get hammered from both ends.

    • “There is going to be a one-off headline inflation hit from a collapsing AUD.”


      Is that you Glen?

  3. Note the ‘independent’ ABC using this as evidence to advocate a drop in IR’s from the RBA!!~!!! Somebody reckoned they must all have IP’s. I’d say the evide3nce is irrefutable!