Australian Inflation Muted in 2Q

Australian Inflation Muted in 2Q

For all those punters panicking about the prospects of an interest rate increase being imposed by the Reserve Bank, the latest inflation data, should allow them the opportunity to chill for the time being.

"I am very comfortable with the current setting of policy, because it creates jobs", RBA Governor Philip Lowe said at a lunch event in Sydney.

Pound Sterling has risen against the Australian Dollar by over half a percent in the mid-week session as data out of Australia disappoints against analyst expectations.

According to the chief economist at CommSec, Craig James, not only were the prices of goods constrained over the period, but also the cost of services.

The consumer price index (CPI) rose 0.2 per cent in the second quarter and 1.9 percent for the year, well short of the 2.2 per cent increase expected. Investors reacted to the inflation news by paring an already slim chance of a hike, with interbank futures implying an 8 percent probability of a move by December.

The RBA has now been sidelined when it comes to moving the interest rate.

The annual inflation comes nearly at mid-range for the central bank goal of a 1-3%.

There is no United Kingdom or Australian data left for release today, but developments in the U.S. could significantly alter the balance of risks for the GBP/AUD exchange rate.

Hickie views concurred with James, and she believes that the figures released on Wednesday are not indicative of a "sustained pick-up" in underlying inflation as "GDP growth is likely to remain below potential again this year and next".

The latest Federal Open Market Committee (FOMC) meeting is highly unlikely to see any changes to policy, but with odds and expectations of an interest rate hike balanced on a knife edge, the subsequent commentary is likely to be highly scrutinised. The protracted period of subdued inflation led the central bank to cut interest rates to a record low of 1.5 percent previous year and it has been on hold ever since.

That is despite recent strength in the labour market.

Other indicators of the economy's health have also been generally positive, with a measure of business conditions jumping in the June quarter to its highest level since early 2008.

The Australian Treasuries have been closely following developments in oil markets due to their impact on inflation expectations. "We are seeking to do this in a way that supports sustainable growth in the economy and that best serves the public interest".



Related Posts

Online Casinos that Accept UK Players
Since the UK has grown to become a thriving gambling market, numerous gaming destinations have popped up that provide the service. Since the UK is regarded as the online gaming hub of the world, gamblers in the region are in no short supply of casino options.

Amazon optimistic over Brexit amid United Kingdom expansion at new London HQ
Amazon has opened its new United Kingdom head office in London with the promise of doubling its research and development team in the country.

Lawyer for Dem Staffer Arrested While Trying to Flee America Blames Islamophobia
Capitol Police to have access to her laptop as part of the investigation. "We turned that stuff over". Wasserman Schultz's spokesman, David Damron, did not immediately return a request for comment.

Rail design led to deadliness of NY train crash — APNewsBreak
- The NTSB has concluded Metro-North Railroad is not to blame for the Valhalla, New York, train crash two and a half years ago. The extensive investigation focused on several factors, including signals at the crossing, the train engineer and Ms.

Ford makes $2B in second quarter, up 3.7%
Ford Motor Co ( F ) announced a profit for its second quarter that rose compared to the same period a year ago . Wednesday's earnings report was the first under Hackett's tenure, who replaced Mark Fields in late May.

Who'd wanna listen to me? The humble genius of Dr. G. Yunupingu
He was left-handed and learnt to play the guitar upside down, joining the acclaimed rock band founded by his late uncle, M. In 2011 Yunupingu was featured on the cover of Rolling Stone as "Australia's most important voice".

Jaitley introduces bill to replace Banking Regulation Ordinance in Lok Sabha
The Opposition, however, was not satisfied with the reply and posed tough questions. "When was procedure simplified", asked Anand Sharma of the Congress and then claimed that the decision was taken just a few days back.

Did Maldives govt lock down parliament to avoid vote?
He said the opposition MPs were pepper sprayed and tear gassed by the police, and stopped from entering the parliament. In 2015, he was sentenced to 13 years in prison on terrorism charges that were widely seen as politically motivated.

Why Gambling Is Better than Sports Betting
Additionally, they can use these versions to practice various strategies to see which one will earn them the best winning chances. These versions give the gambler a chance to sift through the games to find the best one that resonates with their style.

Snapdeal board approves Flipkart's acquisition offer
Despite being valued at $60 million, this cut-price deal marks a significant erosion of value for the payments arm of Snapdeal. Snapdeal and Flipkart board are expected to meet this week to sign the Term Sheet and finalise the deal.

© 2015 ExpressNewsline. All Rights reserved.