Further interest rate cuts from the Reserve Bank may not happen anytime soon, as the latest report on the country’s inflation showed an increase of 2.7% as of last year.
The Consumer Price Index also rose by 0.8% in the last quarter of 2013 – twice as fast than what was forecasted. The rising prices have been trigged by the Government’s increase in imported inflation that affected domestic product prices.
The Reserve Bank may deliberate against any rate cuts because of these factors, as it was expecting inflation to hover closer to the 2% mark.
Read more about this on the Australian website.