Market Analysis: It is unlikely that the Australian Reserve Bank will raise interest rates in March. Quarterly CPI data is crucial.

If the possibility of a rate hike by the Australian central bank in March still exists, then unexpected upside surprises in Australia's January monthly inflation data released on Wednesday will be needed. Given the ongoing tightening of the job market and the unemployment rate significantly below current estimates for full employment, there is reason to believe that the Australian central bank will raise interest rates again in mid-March after the February rate hike. However, it is more likely that the Australian central bank will downplay the role of monthly CPI data and choose to wait for more comprehensive quarterly CPI data at the end of April.