Market slowdown: The governor of the Reserve Bank of Australia still refers to the labour market as a bit tight and adds that monthly data can be volatile and she wouldn’t react to any one figure, remarks that financial traders and economists interpret as hawkish. — Bloomberg
SYDNEY: Australia’s core inflation accelerated beyond expectations last quarter, complicating the Reserve Bank’s path to further policy easing and prompting money markets to slash bets on a near-term interest rate cut.
Yields on three-year government bonds jumped the most since July after the closely-watched trimmed mean gauge of consumer prices, which shaves off volatile items, jumped 1% from three months earlier, when it rose an upwardly revised 0.7%, government data showed yesterday.
