RBA: “Headline CPI will rise above 3% briefly”

Looks like this sentence in the statement is what has caused the AUD to rally. Doesn’t make sense to me as the statement clearly says that this will be a short-term effect brought on by carbon pricing.

  1. The trader next to me said some players in the market misread this line below. They seem to think this means easing in the future is unlikely but it is not how I read this.

    “the Board judged at today’s meeting that a further easing in the stance of monetary policy was appropriate now”

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