Despite a weaker than expected employment report last week and an unchanged unemployment rate of 5.2% versus the RBA’s target unemployment of 4.5%, financial futures markets have not changed their pricing for the official cash rate. Most analysts still expect one more RBA rate cut over the next year but with the increased expectations of a possible 50 basis point cut by the US Federal Reserve later this month, local futures have brought forward the RBA rate cut expectations, albeit only slightly (refer chart).
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