Overnight, Australia released its November CPI report, showing that prices rose by 4.3% over the prior year, a tick below the 4.4% reading expected. Matching the disinflationary trend across the globe, Australia’s inflation has been cut nearly in half from a peak of 8.4% in December 2022 to the current 4.3% reading. According to RBA forecasts, inflation extend its drop toward 3.3% by the end of the year. Not surprisingly, traders increased their bets on RBA rate cuts in the wake of the report, with the market now favoring an interest rate cut in the first half of the year and two 25bps reductions fully discounted ... (full story)