The RBA Monetary Policy Board (MPB) left the cash rate at 3.60% today.
The stronger-than-expected detail underlying the monthly CPI indicator has certainly thrown a spanner in the works.
Comments from the Governor and the Board’s post-meeting statement (first paragraph!) made it clear that Q3 underlying inflation is highly likely to have been above the Bank’s expectation of a little more than +0.6% q/q in the August Statement.
As outlined in our preview (see here), we see Q3 trimmed mean inflation being significantly above the Bank’s SMP forecast.
