"CPI data crunches banks" So screams the Markets Live headline in The Sydney Morning Herald. Let me translate. Inflation is running bang in the middle of the RBA's target range, which means interest rates are less likely to be cut in May (but only marginally so). Banks are beneficiaries of lower interest rates, because the lower the interest rate, the higher the willingness of consumers and investors to borrow money. The more we borrow, the more banks profit. As I write, Australia and New Zealand Banking Group ( ASX: ANZ ) shares are down around 1.5% on the day. Some crunching, huh? I guess when you are used to bank shares only going up, it's a bit of a shock to the system. Also a shock to the system is the jump in the Aussie dollar. The RBA wants a lower dollar, but with inflation running at 2.4% and Sydney house prices running red hot, Glenn Stevens hasn't got a lot of room to move. Lucky he gets paid the big bucks. I figure he'll work something out. He won't get any help from our gutless political leaders.