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RBA presses pause, not stop

While the Reserve Bank of Australia (RBA) is highly likely to leave interest rates on hold at 2.0% at its policy meeting on Tuesday 2nd June, we think it will cut rates further later this year. Our forecast that rates will be reduced by 0.25% at the August and November meetings would take rates down to 1.5% by the end of the year, which would be below the level currently priced into the markets. 

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