With the market in little doubt about the Reserve Bank of Australia’s decision on Tuesday, traders are turning their attention to exactly how tough the central bank’s talk on inflation will be and whether it could show that growing expectations of another interest rate rise are misguided. Financial markets are fully priced for two rate rises and imply a strong chance of a follow-up move, which would take the cash rate above 5 per cent – the highest level since the 2008 global financial crisis . Gift articles to anyone you choose each month when you subscribe.
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