The Reserve Bank’s next policy move is more likely to be a rate cut despite the evidence seen in the stronger than expected March inflation figures, says GSFM’s Stephen Miller.
The Reserve Bank of Australia board will almost certainly leave the policy rate unchanged when it meets next week.
But given the higher-than-anticipated price pressures evident in the March quarter consumer price index and evidence of ongoing labour market resilience, do not expect governor Michele Bullock to abandon her circumspection regarding the next move in the policy rate.
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Stephen Miller is an investment strategy advisor to GSFM and formerly a Treasury officer who served on the personal staff of the then-treasurer Paul Keating from 1985 to 1987.
