Some of the sting has gone out of next week’s December quarter CPI release because the RBA is unlikely to cut in February unless iron ore falls off its perch.
Still, a soft reading might give them pause and if TD Securities monthly inflation is any guide, the number will be soft. Westpac certainly thinks so, forecasting just 0.2% for the quarter.
For contrast, NAB sees 0.7%, which would most definitely kibosh any chance of cut.
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er20130117BullCPIpreview2012Q4.pdf
2013-01-18_CPI_preview.pdf by Belinda Winkelman
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