Another rate rise is likely

 the CPI was released yesterday. ( It has both monthly and quarterly data.) Here is John Hawkin's take.

On a quarterly basis the trimmed mean is not looking good. A conservative central bank would raise rates simply because the risk is too great inflation maybe on the rise again. Remember as we have talked about before the economy's speed limit is reasonably low and thus inflation can rise even though GDP is tepid.

The government could reduce spending. Incredibly for an ALP government they have gone big on universal care as the OECD pointed out. Think batteries, e-cars child care etc.

I should also point out the labour force figures overstate the strength of the labour market.  Private sector employment has gone backwards. It is the non-market sector where employment has surged.

I think on balance the correct move would be to raise rates. We do have monthly CPI figures these days so monetary policy can be changed if needed.