May Rate Cut

The RBA cut the cash rate by 25bp to 2.75%, contrary to our view that rates would be stable. Much of the accompanying statement was relatively upbeat about economic conditions noting that housing and consumption spending was starting to respond to earlier rate cuts....

Low CPI

The CPI and main underlying inflation readings were all below consensus and our forecasts ranging from 0.3% q-o-q to 0.5% with the headline CPI at 0.4% (consensus, 0.6%, Laminar, 0.4%). Annual inflation readings are just below the mid-point of the RBA’s 2-3%...