Interest rate cut bets rise as consumer inflation flatlines

Money markets have lifted their bets that the Reserve Bank will cut interest rates as early as May after consumer inflation plunged in the first three months of this year. 

The Bureau of Statistics says quarterly inflation rose by zero percent and a lower-than-forecast 1.3 percent over the year. 

ABC's Peter Ryan says a steep fall in the Australian dollar is a sign that investors believe the RBA will have little choice but to cut rates.

Source: Thomson Reuters Eikon