Expect The Unexpected As Uncertainty Spirals…

Funny how Bond markets seem to look past most of what RBA Governor Michelle Bullock said in her post Monetary Policy Committee meeting yesterday, but remember they are gamblers. As was expected, the RBA cut the cash rate by 25 basis points to 3.85 per cent in its second reduction this year, but revelations during the press conference that the board had considered an outsized 50 basis point move prompted traders to dial up their bets for further rate cuts. “There was an argument [about a 50 basis point move] and we did debate it, and you’d expect us to […]