Bond traders are looking beyond next week’s Reserve Bank of Australia board meeting and ramping up bets that a cash rate above 5 per cent could well become a reality following a red-hot inflation report on Wednesday.
Money markets are pricing in a 77 per cent chance of the RBA lifting the cash rate to an 18-year high of 4.85 per cent at the November 3 meeting, up from a 69 per cent probability before the September-quarter Consumer Price Index showed prices rose faster than anticipated .
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