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Fed rate cuts won’t send commodity prices soaring

The latest US CPI data may have dashed hopes of interest rate cuts as early as June, but looser monetary policy is still firmly on the cards late this year and over the course of next year. Lower rates should be positive for commodity prices but, excluding precious metals, historically the association has been fairly weak. As a result, we don’t think energy, industrial, or agricultural prices will receive much of a boost.

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