According to analysts at ANZ, the downward surprise in Australia’s core inflation in Q1 leaves the RBA will little choice but to cut the cash rate by 25bp at its May meeting, with another 25bp likely to follow in August. Key Quotes “The much lower than expected outcome for core inflation means that something has to materially change in order for the RBA to credibly forecast an eventual return to 2% inflation. That something has to be a stronger growth outlook that puts material downward pressure on underemployment in the labour market.” “The contribution the RBA can make to a stronger growth outlook is to ease monetary policy which, in its own words, will “support the economy through a depreciation of the exchange rate and by reducing required interest payments on borrowing, freeing up cash for other expenditure.” We have doubts that modest rate cuts will do much to push inflation sustainably higher, but it’s hard to see that the RBA has much choice but to use the tool at its disposal, ie a lower cash rate. We don’t see the timing of the election being a constraint on the RBA acting.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Australia: March quarter core CPI surged by a feeble 0.2%/q – TDS FX Street 4 years According to analysts at ANZ, the downward surprise in Australia's core inflation in Q1 leaves the RBA will little choice but to cut the cash rate by 25bp at its May meeting, with another 25bp likely to follow in August. Key Quotes "The much lower than expected outcome for core inflation means that something has to materially change in order for the RBA to credibly forecast an eventual return to 2% inflation. That something has to be a stronger growth outlook that puts material downward pressure on underemployment in the labour market." "The contribution the RBA can make to a… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.