Asia Session – January 25, 2012 1:30 AM

Consumer prices were unchanged in Q4, lower than expectations of +0.2%. Yet, the market is now forecasting less of a chance for a rate cut next month. Why? If we dig down into the numbers we can see that both trimmed mean and weighted median estimates were lower than the main figure, putting them both in the top half of the RBA’s target range of 2-3%. This could blur the line between a clear cut decision and more ambiguous data being the deciding factor for the RBA. Full text » | Technorati | Stumble It!


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