Australia inflation may decide RBA rate cut and election timing

Money markets are pricing some 70% chance the Reserve Bank of Australia will cut the target rate at its Feb 17 and 18 meeting. — Bloomberg

SYDNEY: Australia’s quarterly inflation data this week may be key to whether the central bank finally embarks on a monetary easing cycle soon, and in turn, help decide the timing of an election due by May 17.

While money markets are pricing some 70% chance the Reserve Bank of Australia (RBA) will cut the target rate at its Feb 17 and 18 meeting, a lot depends on price data of the last quarter scheduled for release today.