Australia’s inflation expectations increased in March, survey data from the Melbourne Institute showed Thursday.
The TD Securities -Melbourne Institute monthly inflation gauge rose 0.4 percent in March, after staying flat in February.
In the twelve months to March, the inflation gauge increased 1.5 percent, following a 1.3 percent rise for the twelve months to February.
Annette Beacher, chief Asia-Pac macro strategist at TD Securities said headline inflation is expected to barely rise by 0.1 percent in the quarter, to be 1.2 percent higher than a year ago.
“While low inflation certainly allows the RBA to cut the cash rate further, we pencil in only one more cash rate reduction to 2 percent in May, with risks of delay into the second half of the year, should the housing sector keep expanding at an uncomfortable pace,” Beacher said.
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