The consumer price index for the March quarter remained steady at 2.4 per cent, while trimmed mean inflation, which removes volatile price movements, dropped to 2.9 per cent.<\/p>\n
Both measures are within the Reserve Bank’s target band of two to three per cent.<\/p>\n
But stronger-than-expected unemployment and wages growth, as well as a pause in trade hostilities between the US and China, reduced the urgency for the RBA to remove monetary restrictiveness.<\/p>\n
Predictions of a bumper 50 basis point cut all but evaporated ahead of the meeting.<\/p>\n
Given the widespread expectations of a rate cut, traders will turn their attention to governor Michele Bullock’s post-meeting press conference for signs of where the board is likely to go next.<\/p>\n
How much Ms Bullock pushes back on market pricing of the cash rate, as she did following the February decision, will feed into investor confidence of further cuts.<\/p>\n