Inflation Decreases but Not Enough to Bring Interest Rates Down

Australia’s inflation rate decreased in the year to March but not enough to prompt the Reserve Bank of Australia (RBA) to cut interest rates anytime soon. The latest data, released today by the Australian Bureau of Statistics (ABS), showed the annual consumer price index (CPI) dropped from 4.1 percent in December to 3.6 percent in March after market analysts had predicted the rate to slip as far as 3.5 percent. The RBA signalled its target range for an interest rate cut at 2-3 percent, however, the increasing threat of escalating tensions in the Middle East and their effect on oil prices should ensure delays to any impending cuts over the next quarter....