CPI – QII 2014 – Headline inflation at 3%

The underlying CPI outcomes were a touch above market expectations and are a reminder that not all inflation risksare to the downside. The QI underlying figures were revised a touch higher as well. Nevertheless, the message from theRBA is that they want a long period of stability in rates. In our view, the RBA can stay on hold till QI 2015.

Read the full report: Economic Research