Already a subscriber?The Australian dollar and bond yields jumped after a surprisingly strong inflation report stoked speculation the Reserve Bank may lift the cash rate again to tame above-target inflation that has survived the past 13 rate rises.
The three-year Australian government bond yield rose the most since June, up 10 basis points to 4 per cent.The RBA cash rate has been on hold at 4.35 per cent since November last year as policymakers assess whether Australia will continue on the narrow path to a soft economic landing and return inflation to its 2 per cent to 3 per cent target.and above forecasts for a 0.8 per cent result. The annual pace, however, slowed to 3.6 per cent from 4.1 per cent.
Traders have erased almost all speculation that the RBA will ease this year, implying just a 14 per cent chance of a rate cut by December, from 70 per cent before the CPI release.
Source: Loan Digest (loandigest.net)
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