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RBA still on course to cut rates by February

The Reserve Bank of Australia is all but certain to leave rates unchanged at its meeting next week. We suspect it will reiterate its pledge to hold its fire until year-end, given that the labour market remains robust and underlying inflation is still running above target. However, as weak activity continues to dampen price pressures, we still expect the Bank to embark on a modest easing cycle from Q1 2025.

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