That the Reserve Bank will lift the cash rate to 4.85 per cent on Tuesday is all but a sure bet. As of Monday, the money market implied probability of an increase was over 80 per cent, after a week of hawkish rhetoric was followed up by a high inflation print.
Of course, we can never totally rule out another shock misreading of the central bank’s intentions by the market, which means there’s good money for anyone willing to bet on a surprise hold.
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