(MENAFN) Australian consumer prices were amazingly soft last quarter and core inflation average remained low target for a sixth straight quarter, a reminder of just why interest rates in the country are at registered lows and set to remain there for months to come.
Tom Kennedy, an economist at JPMorgan said, "obviously the RBA is not going to be happy with these levels. Core inflation has been too low for too long,", adding "The RBA is not going to be thinking about rate hikes anytime soon."
Investors responded to the inflation news by paring an already slim chance of a hike, with interbank futures inclusion an 8 percent eventuality of a move by December.
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