It is widely expected that the RBA will deliver a 25 basis point rate cut at its meeting on Tuesday and our market is well-priced for the expected cut. Yields continued to drift lower last week as we edge closer to the RBA meeting with the race to call an ever-lower terminal rate continuing.
This will be the first rate move since August 2016 and the first RBA rate move under the Governorship of Philip Lowe.
The market is currently pricing in a 0.85% low for the cash rate while a new 0.5% call was released by one aggressive/optimistic economist last week.
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