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Australia's RBA Stands Firm
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Overview
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Australia's RBA is expected to maintain its cash rate at 4.35% due to slower home-price growth and easing inflation, while the Federal Reserve may ease its policy. Markets predict a 40% chance of an Australia rate hike by mid-next year, with New Zealand and the UK also expected to ease policy by mid-2024. Despite easing inflation and slowing house-price gains, underlying pressures persist.
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How might the changes to the RBA's meeting process affect its decision-making and market expectations moving forward?
How might the contrasting monetary policies of the RBA and the Federal Reserve impact global financial markets?
What factors are contributing to the underlying pressures in Australia's economy despite easing inflation and slowing house-price gains?
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