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Australia Watchers Split on RBA Rate Path as Inflation Lingers
Australia’s interest rate meeting is dividing economists and money markets on whether the Reserve Bank will stand pat to assess the impact of previous tightening or raise again to forestall upside risks to prices. Economists are almost evenly split, with Commonwealth Bank of Australia among 14 expecting the RBA to maintain the cash rate at 4.1% on Tuesday, while 13 including Goldman Sachs Group Inc. and three other major banks forecast another quarter-point increase. Traders are pricing a 60% chance of a pause following back-to-back hikes the RBA had described in minutes as “finely balanced” calls. The RBA ... (full story)