There’s a growing risk the Reserve Bank of Australia (RBA) may end up cutting interest rates sooner than US Federal Reserve with a slowdown in underlying inflationary pressures in the December quarter, on top of signs of stalling consumer spending and softening labour market conditions, seeing markets shift forward expectation for a 25 basis point rate cut to early May. RBA rate cut brought froward to May You can see in this screenshot from Bloomberg that implied rate cut pricing based off cash rate futures is now seen at just over 50% for May with more than two full cuts now priced into the curve by the end of the ... (full story)