Michelle Bullock and co will be cheering yesterday’s inflation number, which takes a ‘hike’ completely off the table, in our view. Core inflation decelerated last quarter, and the market is now pricing in 16bps of cuts this side of Christmas, or in other words, a 63% chance of a 25bps cut. UBS this morning changed their view, taking a rate hike out of their forecasts.
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Interest rate expectations – Futures pricing – Source Bloomberg
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Interest rate expectations – Futures pricing – Source Bloomberg
