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Rate cutting cycle may not be finished yet

While the third quarter inflation data suggest that there is an outside chance that the Reserve Bank of Australia will cut interest rates from 1.50% to 1.25% at its policy meeting on Tuesday 1st November, we expect that the Bank will leave rates on hold. Either way, the issue of persistently low underlying inflation may prompt the RBA to cut rates further next year, perhaps to 1.0%.  

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