Friday, January 23 2015
(Source: Phillip Baker AFR)
A a week ago, there was no chance the Reserve Bank of Australia would cut rates to 2.25 per cent in February, but now it’s a 40 per cent chance. If the RBA does not cut at the first meeting for 2015, traders are betting it’s an 85 per cent chance that it will happen in March.
This follows a larger than expected fall in New Zealand inflation rate which has sparked talk that similar fall in Australia’s inflation next week will open door for rate cut.
Still, 22 out of 25 economists say the RBA will keep the cash rate steady at 2.5 per cent next month.
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