Daily FNArena News - Australia

While the RBA almost certainly won’t lift interest rates this week after the better than expected CPI outcome, experts agree the bank’s tightening bias will remain in place.

ResMed’s third quarter performance was below market expectations and there was a surprise product recall, but brokers remain positive longer-term.

The Westpac_Melbourne Institute Leading Indicators Index remains above trend levels, indicative of ongoing strength in the economy and a possible precursor to interest rate hikes next year.

Australia’s CPI for the March quarter was far lower than the market expected and likely puts interest rates on hold, though experts suspect the RBA’s tightening bias to remain in place.

With the housing market still in deficit ANZ Bank expects the market will remain tight, but rental increases should bring investors and developers back in coming months.

It’s a March quarter CPI of 0.1% when economists expected 0.7%.

Today’s flat PPI was better than expected but presents only a weak link to the CPI, so opinions remain mixed on a rate hike next month.

Merrill Lynch and Credit Suisse have both raised their ratings for Coca-Cola Amatil to Buy, bucking the trend amongst their colleagues.

There was little change in the March quarter PPI over the December quarter, according to ABS figures.

The March quarter saw lower fuel prices and a stronger Aussie dollar leading to a fall in the import price index. Exports, however, were flat.