NAB first of big four lenders to call May rate cut

National Australia Bank is the only one of the four big domestic lenders to commit to calling a cut to the cash rate next week in the wake of Wednesday’s surprisingly low inflation report.

NAB’s switch followed data from the Australia Bureau of Statistics showing headline deflation for the first quarter this year. It was the first negative reading since the December quarter of 2008.

Although underlying inflation remains above zero, the year-on-year rate, of 1.55 per cent, is now well below the bottom of the Reserve Bank of Australia’s 2 per cent to 3 per cent target band.

The Sydney Morning Herald, April 28, 2016