Australian inflation as expected, rate cut is go

Wednesday, 27 July 2016

The ABS is out with June quarter inflation and it has come in at 0.4% as expected:

Trimmed mean was 0.5% versus 0.4% but year on year is as expected at 1.7%. It appears Chinese banana man has invaded the forex market because the dollar rather stoopidly took off:

Rate cut is go.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.