After yesterday's shock low CPI reading calls for an Reserve Bank of Australia rate cut next week are about the place

The Sydney Morning Herald with the view from National Australia Bank:

  • RBA's longer-term inflation outlook will be downgraded in the RBA economic forecasts next Friday
  • "It will be surprising if this new forecast isn't lower than their February forecast - certainly for 2016 and possibly beyond. "[The] RBA remains an inflation-targeting central bank, so faced with this new lower inflation forecast it now seems likely that the bank's board will vote in May to take the opportunity to provide some slight further assistance to the Australian economy and so potentially help lower the unemployment rate more quickly than previously forecast"

ANZ disagree:

  • "The risks are obviously there, and it's a close call, but we don't think the RBA will ease in May"

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I posted yesterday on other views:

Mike followed up with