As the Reserve Bank of Australia prepares to make a decision on interest rates at next week’s policy meeting, traders are taking into consideration the most data which reinforces analysts’ expectations of a rate cut. Earlier today, the Australian Bureau of Statistics released its PPI readings for the first quarter of the year, and readings were exceedingly below forecasts. As compared to the last quarter of 2011, the reading fell to -0.3% from 0.3%, while analysts had forecast a rise to 0.4%; as compared to the same period a year ago, the data on input inflation shows a decline to 1.4% from 2.9%, well below 2.2% expectations. Any lingering concerns that inflation could be a concern can clearly now be dismissed. Read more
