PrintAustralia's CPI Surprise Drives Modest Gain In AUD, Higher Bond Yields, notes Scotiabank
BY MT Newswires | ECONOMIC | 02/25/26 09:15 AM EST09:15 AM EST, 02/25/2026 (MT Newswires) -- The Australian consumer price index surprised a bit higher overnight Tuesday and drove a modest gain in the Australian dollar (AUD) and higher local bond yields, with two-year yields up about 4bps in a mild bear flattener, Scotiabank noted.
The March 17 Reserve Bank of Australia interest rate decision continues to be priced for a hold, but the May 5 decision is mostly priced for another 25bps hike, minimally impacted by the overnight CPI, the bank also noted.
CPI increased by 0.4% month over month and 3.8% year over year while the consensus was 3.7% consensus, pointed out the bank. Trimmed mean CPI was up by 0.3% month over month and 3.4% year over year, a tick above the prior reading and consensus.
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