Economics
Australia Rate Bears Start Falling on Their Swords
- Still premature for hawks to begin celebrating as hike far off
- Subdued labor market and weak wages see CPI creeping higher
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Australia’s bearish economists are losing confidence or outright abandoning their calls for the Reserve Bank of Australia to cut interest rates further as core inflation speeds up.
But hawks shouldn’t start popping champagne corks yet: Rather than shooting higher, consumer prices are more likely to creep forward instead. The upshot is Governor Philip Lowe’s plan to sit still is reinforced by Wednesday’s data.