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RBA Downplays Soft CPI, Says Rate Cuts Unlikely Before Q4 Inflation Test

The board will wait for the December‑quarter CPI on January 28 before forming its February decision.

Overview

  • November CPI was flat month on month, taking annual headline inflation to 3.4% while the trimmed mean held at 3.2%, still above the 2–3% target.
  • Deputy Governor Andrew Hauser called the data "helpful" but "largely as expected" and said recent figures contained "not a lot of news" for policymakers.
  • Hauser reiterated that cuts are very unlikely in the near term and stressed the RBA targets inflation one to two years ahead rather than the latest monthly print.
  • Analysts attribute much of the headline easing to Black Friday discounting, with housing costs such as rents and new dwellings remaining firm.
  • Economists are split for February—Commonwealth Bank tips a 25bp hike to 3.85% while ANZ and Westpac expect a hold—and markets price roughly a one‑in‑three chance of a rise, with jobs data on January 22 also in focus.