Don’t go expecting the RBA to cut rates now..I suspect they will wait and see..economists will be struggling to justify their existence as usual but unless we get a shocker from Europe..I believe that the RBA will not move!
Inflation rose more than expected in the third quarter but remains at levels weak enough to allow room for the RBA to cut rates again in November.
Data out today showed inflation rose 1.4 per cent in the three months to the end of September following the introduction of the carbon tax on 1 July. Economists polled by Bloomberg tipped a 1 per cent rise as the impact of the carbon tax filtered through the economy.
On an annual basis, inflation increased 2 per cent, up from a 1.2 per cent rise in the year to June, the ABS said. Economists forecast the inflation rate would tick up to 1.6 per cent in the year to September.