According to Odaily, despite Reserve Bank of Australia (RBA) Governor Michele Bullock's indication that a rate cut is not imminent, the money market has been betting on a rate reduction. However, recent data released this week showed that Australia's inflation rate for July was slightly higher than economists had anticipated, leading to a decrease in rate cut expectations.
The market has now reduced the probability of an RBA rate cut in November from 56% before the data release to 42%. Nevertheless, the market still anticipates an 88% chance of a rate cut by the RBA in December, as current market pricing suggests that the Federal Reserve may have conducted two rate cuts by then.
