{"id":71369,"date":"2015-04-22T04:15:22","date_gmt":"2015-04-22T08:15:22","guid":{"rendered":"http:\/\/countingpips.com\/?p=71369"},"modified":"2015-04-22T06:42:06","modified_gmt":"2015-04-22T10:42:06","slug":"headline-cpi-rises-in-australia-dimming-prospects-for-may-rate-cut","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/04\/headline-cpi-rises-in-australia-dimming-prospects-for-may-rate-cut\/","title":{"rendered":"Headline CPI rises in Australia, dimming prospects for May rate cut"},"content":{"rendered":"
April 22, 2015<\/div>
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Article by ForexTime<\/a><\/p>\n

The Australian dollar was boosted versus the greenback on Wednesday after the release of Australian inflation numbers.<\/p>\n

The underlying inflation number was slightly higher than what most people expected. The headline consumer price index (CPI) inched up 0.2 percent in the first quarter, while the annual pace of inflation slowed to 1.3 percent from 1.7 percent, matching expectations.<\/p>\n

The rise in core inflation dimmed prospects for a cut in interest rates next week on May 5th. By the Reserve Bank of Australia.<\/p>\n

The Aussie rose a quarter of a U.S. cent in reaction to the slightly higher reading for underlying inflation.<\/p>\n

The following are some comments from economists in reaction to the CPI data today:<\/p>

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David de Garis, a senior economists at National Australia Bank said:<\/p>\n

\u201cThe underlying is towards the upper end of market and the RBA\u2019s expectations they outlined in their February statement, they forecast 2.25 percent year-end underlying inflation to June so at the moment it\u2019s tracking at or a bit above that.<\/p>\n

\u201cIt\u2019s certainly not a soft number and arguably a tad stronger than they expected and it\u2019s certainly not evidence the economy is softer, if anything it adds more to the okay picture of the economy they have seen.<\/p>\n

\u201cIt probably reduces the risk a little bit more that they will ease in May\u2026the case (for easing) hasn\u2019t disappeared, it\u2019s a longish game but it certainly reduces the chance a little bit more for May anyway.\u201d<\/p>\n

Tom Kennedy, an economist at JP Morgan said:<\/p>\n

\u201cThere weren\u2019t too many surprises today \u2026 Heading in, we had May for an RBA rate cut, that was in line with most economist surveys. We\u2019ll take look at our forecast, but there\u2019s nothing really in the figures today that will change our view on that.<\/p>\n

\u201cBut May will be a very close call, there will be arguments for the RBA to remain on hold and also arguments for the RBA to cut again. They\u2019ve got scope (to cut) with inflation quite low and the data has been OK recently, but over the longer term the trend is quite poor so we thing there is enough evidence to get them over the line.<\/p>\n

\u201cOnce oil moves higher we should start to see CPI return to the target band. We think CPI will incrementally firm soon, we\u2019re at the low point now and you should see CPI move higher in the next two or three quarters.\u201d<\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n

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Article by ForexTime The Australian dollar was boosted versus the greenback on Wednesday after the release of Australian inflation numbers. The underlying inflation number was slightly higher than what most people expected. The headline consumer price index (CPI) inched up 0.2 percent in the first quarter, while the annual pace of inflation slowed to 1.3 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-71369","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/71369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=71369"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/71369\/revisions"}],"predecessor-version":[{"id":71394,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/71369\/revisions\/71394"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=71369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=71369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=71369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}