The softer-than-expected annual underlying inflation figure of 3.2 per cent has landed right on the decimal digit to make next month’s Reserve Bank of Australia board meeting a cliffhanger.
There is both a plausible rationale to cut interest rates as soon as next month, but also a reasonable case to hold steady and await more information on the economy.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
