After Wednesday’s encouraging inflation numbers, the Albanese government – and the financial markets – would be shocked if the Reserve Bank doesn’t cut interest rates in February.
Having said that, with interest rates there are no guarantees, especially in a volatile world.
Underlying inflation was 3.2% through the year to the December quarter, with headline inflation 2.4%. The numbers were better than earlier forecasts by either the Reserve Bank or Treasury. The trimmed mean (the measure the bank uses for underlying inflation) for the last six months was 2.7%.
