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.
