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VIEW: CBA: Labour Mkt Data Adds Weight To Case For < 50bp Step In Sep

RBA

CBA note that the recent data makes it “clear that wages pressures remain modest despite a tight labour market and rising inflation. Australia is not facing a wage price spiral unlike in some other jurisdictions. And today’s downside surprise on employment adds weight to the case for a smaller than 50 basis point hike (either 40bp or 25bp) at the RBA Board’s September meeting. We will firm up our expectations for the September decision in due course but still see the cash rate peaking at 2.60% this cycle.”

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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