The above graph shows the annual and quarterly percentage change in the Consumers Price Index since March 1998 and the official cash rate figures since it was introduced in March 1999.
The Consumers Price Index rose 0.4% in the three months ended March 31, for an annual pace of 2%. This latest change was 0.2% less than what the economists were predicting and these inflation figures may have a bearing on Bollard's review of monetary policy next week, when he is expected to keep the official cash rate at a record low 2.5% while providing further hints to the timing of any eventual hike. Some economists are now betting he will wait until the third quarter rather than move mid-year as he has been indicating.
