Bond traders have ramped up bets that the Reserve Bank will deliver aggressive rate cuts after the central bank struck a surprisingly relaxed tone on inflation and signalled it is ready to act if Donald Trump’s global trade war escalates.
The RBA lowered the cash rate by 25 basis points on Tuesday to 3.85 per cent in a move that was widely tipped by economists and bond markets. But it was the tone of the RBA’s statement that really caught traders off guard.
Source: https://www.afr.com/markets/debt-markets/markets-load-up-on-july-rate-cut-bets-20250521-p5m0wo