Financial markets and we are assuming that the Q2 CPI and underlying inflation readings due later this morning will be low again. By low we mean around 0.4% q-o-q which would reduce annual headline inflation to around 1.1% y-o-y and average underlying inflation (based on the trimmed mean and weighted median measures) to around 1.3% y-o-y, both tracking well below the bottom of the RBA’s 2-3% target band for inflation and probably raising the need for the RBA to adjust downwards its inflation forecasts for the remainder of 2016 and 2017 in its next quarterly Monetary Policy Statement due to be released on 5th August. If very low inflation is confirmed in the Q2 CPI report this meaning it also makes it very likely that the RBA will cut the cash rate another 25bps to 1.50% at its policy meeting on 2nd August....