The below-forecast releases of Australian inflation data for the first quarter has almost confirmed a rate cut at tomorrow’s RBA meeting – the question now remaining whether the central bank will deliver 25bp or 50bp in cuts. According to market positioning and pricing, RBA rate cuts have been on the agenda since August last year, with the market perhaps getting overzealous in looking for 170bp worth of cuts over the following 12 months back in November, as per Credit Suisse’s OIS implied index. Two sets of 25bp cuts did follow in November and December but at the start of this year the RBA surprised with a (in ... (full story)