Bank of America Global Research discusses its expectations for tomorrow's RBA policy meeting.

"Australia's latest CPI report confirmed that inflation pressures had peaked in 4Q22, with headline inflation slowing to 7.0% YoY in 1Q23, from 7.8% in 4Q22. Meanwhile, trimmed mean inflation slowed to 6.6% YoY (1.2% QoQ), largely in line with the RBA’s path implied by its projections in its February Statement on Monetary Policy (SMP),"BofA notes.

"Though still too high on an absolute basis, the latest CPI data should buy some time for the growth-sensitive RBA to assess the impact of its tightening. We continue to expect a hold at the Board meeting on 2 May, and think that the central bank will likely remain on an extended pause," BofA adds.