Inflation is not a barrier to another cash rate cut as soon as the next Reserve Bank of Australia board meeting in July, as new figures showed price pressures remained within the central bank’s target band last month.
Headline inflation was unchanged at 2.4 per cent in April, the Australian Bureau of Statistics said on Wednesday. While the figure was a little above market expectations for a 2.3 per cent outcome, the monthly figures are notoriously volatile and the RBA pays more attention to the quarterly data.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
Cécile Lefort is a markets reporter based in the Sydney newsroom. Cécile worked in New York and Hong Kong writing about global capital markets. Email Cecile at cecile.lefort@afr.com
