hendren global group article news

hendren global group article news
http://hendrengroup.biz/blog/2013/04/30/subdued-inflation-lifts-chance-of-rate-cuts/
Contributing to a lower-than-expected inflation rate is the fall in the prices of fruit, furniture and travel; these keep the door open for further rate cuts if the economy weakens. The latest Bureau of Statistics data show: The headline inflation increased 0.4 per cent quarter-to-quarter, and 2.5 per cent year-on-year. “It was quite surprising because [the first quarter of the year] is generally a quarter of strong seasonal price increases,” Citi senior economist Joshua Williamson said. “There were fairly wide weaker results than expected across the board for most of the important indicators.” The trimmed mean increased by 0.3 per cent for the quarter along with 2.2 per cent in the year to March, whereas the weighted median elevated 0.5 per cent for the three months and 2.6 per cent over the past year. The trimmed mean and the weighted median frame the fundamental inflation rate, which has abide comfortably within the central bank’s target band of 2 to 3 per cent covering the past few years, giving the central bank the chance to trim down interest rates from a previously low 3 per cent if economic activity deteriorates this year as mining investment hits the highest point. Mr Williamson said the lower-than-expected rate meant there was an increased chance of a cut to the cash rate in May, or in June after company capital expenditure expectations data is released. In May the market is now pricing in a 42 per cent chance of a rate cut by the RBA...