VIDEO: Inflation falls to 6.8%; rate pause more plausible

The monthly consumer price index (CPI) indicator has lowered for the second month in a row, to 6.8% in the year to February, potentially easing pressure on the central bank to hike interest rates.

The Australian Bureau of Statistics says the figure is lower than the 7.4% annual rise in January, and marks the second consecutive month of lower annual inflation, also known as ‘disinflation’, from the peak of 8.4% in December. 

The Reserve Bank of Australia will meet early April to make a decision on the cash rate, which is currently 3.6%, and economists are forecasting a halt then, or at least in May.

The recent issues facing the global banking system - the latest drama being around Deutsche Bank, could give the RBA a stronger case for pressing pause.