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Traders trim RBA rate rise bets as CPI surprises

Tom Richardson

Shares climbed while bond yields and the Australian dollar eased on Wednesday as traders lifted bets the Reserve Bank will hold interest rates at 4.1 per cent next week.

That is after monthly headline inflation slowed to 5.6 per cent for May from 6.8 per cent the previous month as fuel and accommodation prices tumbled. Market consensus was for the consumer price index to come in at 6.1 per cent last month.

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Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com

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    Original URL: https://www.afr.com/markets/equity-markets/traders-trim-rba-rate-rise-bets-as-cpi-surprises-20230628-p5dk2l