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Australia’s Lowe Shows He’s No ‘Inflation Nutter’ in Debut Call

  • Governor decouples next inflation report from policy meeting
  • Money markets aren’t forecasting cut until June at earliest
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Australia Keeps Rates Unchanged Amid Commodity Rebound

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Reserve Bank of Australia Governor Philip Lowe gave his first policy statement Tuesday without deviating from a neutral stance. But his failure to mention inflation data due in a fortnight may signal a scaling back of CPI’s current significance.

Two weeks after taking the reins, Lowe fleshed out a slightly more detailed take on the economy than in last month’s statement: he balanced an apparent slowdown in household consumption and “subdued” full-time employment growth against resurgent commodity prices and renewed strength in some housing markets. The cash rate was left unchanged at 1.5 percent.