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Australia: Seasonality doesn’t explain housing rebound

Posted on 01 October 2012

While 19 of 28 economists surveyed on Friday predicted the RBA would hold rates steady on Tuesday, there is an interesting unanimity amongst media commentators that they will, in fact, pre-emptively cut before the third quarter inflation data is released.
On 7 September I explained that an October cut was very much “live”. Today Alan Mitchell and David Bassanese suggest the central bank will ease, News Limited’s Terry McCrann argues a cut is “almost certain”, and The Australian’s David Uren says it is “widely expected”. The financial markets have retained their high, 70 per cent plus probability on this outcome………………………………………..Full Article: Source

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