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Australia’s average annual inflation over the past five years has grown at the slowest pace in 55-years, despite the Reserve Bank of Australia’s 575 basis point rate cut since the great financial crisis, according to David Scutt, Markets and economics editor, Business Insider Australia.

The five-year annualized inflation is currently running at 1.75%, the weakest level 1963.  Inflation has been weaker over the past 12 months, rising just 1.3% from the March quarter last year.

The markets, therefore, are expecting the central bank to deliver rate cuts in the second half of this year.