Australia's recent dip into deflationary territory is unlikely to have been a one off and could prompt further interest rate cuts this year, the Reserve Bank has signalled. According to the minutes from its May meeting, where the cash rate was cut to 1.75 per cent on budget day, the RBA board was briefed about "ongoing inflation trends" and that the outlook could be lower for longer. Referring to the March CPI result where inflation went backwards by 0.2 per cent, the board was told that the data "were less subject to measurement error than many other key data series". "Moreover, the lower-than-expected CPI ... (full story)