Latest note from Macquarie Bank economist James McIntyre
– Q1 CPI data "a shocker"
– RBA 25bps rate cut now expected next week
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We had highlighted the 1Q16 CPI outcome as a potential last ditch catalyst that could result in the RBA delivering a surprise May rate cut. As a result of the exceptionally weak outcome
Macquarie only two weeks ago pushed their rate cut forecast out following strong jobs data.