Economists at Citi on Friday joined Australia’s major banks in predicting a third interest rate cut by the country’s central bank in October, citing more spare capacity in the labor market and a smaller chance of fiscal support in the near term. Financial futures are now pricing an 80% chance of cut by the Reserve Bank of Australia (RBA) in October to a record low 0.75%, up from a 50-50 probability before data out on Thursday showed the country’s unemployment rate had increased to a one-year high of 5.3% in August. “We previously said that a move higher in the unemployment rate to 5.3% or higher could bring forward ... (full story)