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Rumours
The revelation that the underlying CPI was not another repeat of the first quarter when growth was an anaemic 0.2% but pushed up this quarter to 0.5% had the market rethinking and repricing whether the RBA was indeed more likely than not to cut rates again next week. The 30 day RBA futures curve this morning is pricing near 50-50 split with some economists changing their call to no change in August. NAB’s assessment is that the CPI was right in line with RBA May SoMP forecasts and likely sufficient to see them remain on hold next week. Peter Martin in the SMH though says the RBA is on standby to cut rates on ... (full story)