CPI data maintains case for steady rates - next move still up 2015

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CPI data maintains case for steady rates - next move still up 2015. My base case view is that interest rates are likely to remain on hold until the mid-late 2015, due to the sluggish underlying pace of growth in the economy. Apart from the housing sector, there are simply not that many growth drivers for the economy due to ongoing consumer caution, tight fiscal policy and the lagged impact of past A$ strength. Today's CPI results confirm that the weak underlying pace growth is helping keep core inflation contained, which means the RBA can continue to leave interest rates steady. Going forward, the weaker $A - which still needs to weaken more - should help revive growth in some sectors of the economy and place upward pressure on inflation - which will lay the foundations for higher official interest rates later next year. @ccaton @cjames @dscutt @cweston via @dbassanese

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