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Pricing Of Supersized RBA Hike Later Today Unwound

STIR

The IB strip currently prices in a touch over ~16bp of tightening come the end of today’s RBA decision (per BBG WIRP), shy of the near ~24bp of tightening that was priced in on the back of the firmer than expected Q122 CPI data observed last week (this is based on the current effective cash rate of 6bp). The market is near enough priced to perfection for a 15bp rate hike after largely removing the pricing re: the deployment of a larger increment lift off.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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